2018 GDP Growth Comes Up Short of 3% Goal
GDP growth chart for 2018

2018 GDP Growth Comes Up Short of 3% Goal

For most of us 2018 is already far in the rear-view mirror as we motor through 2019. Of course, following the Bureau of Economic Analysis of the United States Department of Commerce’s release of 2018 gross domestic product (GDP) figures today, those who keep an eye on the U.S. economy are finding themselves forced to look back. Those who do will find a bit of a mixed bag that includes some disappointments among otherwise strong results.

As MarketWatch reports, GDP growth ended up at 2.6% for the fourth quarter of 2018. While that’s far better than the 1.9% growth some economists had predicted, it’s down markedly from Q2’s 4.2% expansion and the 3.4% increase observed during Q3. For the year (also dragged down by a 2.2% first quarter) the U.S. averaged a 2.9% growth rate. In other words annual growth fell just short of the President’s stated 3% goal.

Somewhat ironically it seems that the Trump administration may have still been able to reach that 3% goal had it not been for the recent government shutdown. Although the shutdown took place mainly in January of this year, the Bureau of Economic Analysis estimates that it could have shaved .1% of growth from the fourth quarter. That may not have been enough to push the yearly average over the top but, if it did, it would have been a symbolic win for the President. Still the 2.9% growth for last year is an improvement over the 2.2% seen in 2017 and marks the best year of growth since 2015.

There are several reasons economists are citing for the year-end slowdown. Among them are continuing trade tensions with China that, despite apparent progress, have yet to be resolved. Additionally it is believed that the impacts felt following the passage of the Tax Cuts and Jobs Act have started to wain. What’s more is that slowing is expected to deepen from here on out. Capital Economic chief U.S. economist Paul Ashworth told CNN Business, “The first quarter won’t be this good. We expect GDP growth to slow to 2.2% this year and only 1.2% in 2020.”

Between the falling growth rate and narrowly missing the 3% mark, there are reasons for being pessimistic about the latest GDP report. At the same time figures have continually exceeded expectations, with fourth quarter numbers proving no exception. Therefore, while we can all make educated guesses about what’s ahead, it may be foolish to count out the U.S. economy just yet.

Leave a Reply

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories: Amazon.com, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...