GDP Shows Need for Pro-Growth Policies
- The economy expanded at a rate of 0.7 percent in the first quarter of 2017.
- These numbers show the need for pro-growth tax reform and regulatory relief that Republicans are committed to delivering. Obama-era policies are still preventing the economy from reaching its full potential.
The nation’s economy grew at an inflation-adjusted rate of 0.7 percent in the first quarter of 2017. This is not the level of growth that we should strive to achieve. It is a continuation of weak growth from Obama-era policies that have not been unwound yet. In time, Republicans will enact pro-growth tax reform, regulatory relief, and other policies to encourage the private sector to expand and create jobs. It is worth noting that last winter’s GDP growth also was low – 0.9 percent in the fourth quarter of 2015 and 0.8 percent in the first quarter of 2016.
GDP Components – Change in Q1 2017
Personal consumption expenditures were particularly weak this quarter, growing at only 0.3 percent. Gross private domestic investment grew at 4.3 percent and exports grew at 5.8 percent. Imports, a subtraction from GDP calculations, grew at 4.1 percent. Government spending shrank, with federal government spending declining by 1.9 percent and state and local government spending declining by 1.6 percent.
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