US Q2 Growth Rate -0.6%... Confirmed Consecutive Negative Growth for 2 Quarters

[Asia Economy New York=Special Correspondent Joselgina] The U.S. Department of Commerce announced on the 29th (local time) that the GDP growth rate for the second quarter of this year was finalized at an annualized -0.6%. This figure is the final estimate, identical to the preliminary figure released last month. The U.S. growth rate is announced in three stages: advance estimate, preliminary estimate, and final estimate.

Accordingly, the U.S. economy, which contracted by 1.6% in the first quarter, has confirmed negative growth for two consecutive quarters. This indicates a technical recession. It is the first time in two years since the COVID-19 pandemic began in the first and second quarters of 2020 that the U.S. economy has met the conditions for a technical recession.

However, the Joe Biden administration and many private economists believe that the U.S. economy has not yet entered a recession. This is because the labor market remains strong and consumer spending is at a solid level. Consumer spending in the second quarter was recorded to have increased by an annualized 2.0%. In the U.S., the National Bureau of Economic Research (NBER) officially determines whether the economy is in a recession.

There are also forecasts that the GDP growth rate for the third quarter will turn positive. The economists’ growth rate forecast for the third quarter, compiled by financial information company FactSet, is an annualized 1.5%.