Far Exceeding the Early 2% Potential Growth Rate
Impact of Sharp Decline in Imports Ahead of Tariff Impositions
The U.S. economy, which experienced negative growth in the first quarter of this year, returned to normal in the second quarter.
On July 30 (local time), the U.S. Department of Commerce announced that the preliminary estimate for the U.S. gross domestic product (GDP) growth rate in the second quarter was 3.0% on an annualized quarter-over-quarter basis.
This figure is significantly higher than the estimated potential growth rate, which is in the low 2% range. It also far exceeds the 2.3% forecast by experts surveyed by Dow Jones.
Previously, the U.S. economy posted a negative growth rate of 0.5% in the first quarter, mainly due to a temporary surge in imports ahead of tariff impositions.
The main reason for the recovery in the growth rate was a sharp decline in imports, as the temporary inventory buildup that had occurred in anticipation of tariffs subsided.
Unlike Korea, the United States releases its GDP statistics by converting the quarter-over-quarter growth rate (seasonally adjusted) into an annualized rate.
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