The American economy is reduced by two quarters in a row, which can be defined as a “technical recession”. However, the White House administration and US President Joe Biden deny this, writes Voice of America.
In the second quarter of 2022, the United States GDP fell by 0.9%, which became the second quarterly reduction in a row. In the first three months of 2022, this indicator decreased by 1.6%.
Economists call this a “technical recession.” But Washington continues to argue that the country does not threaten a recession, and what is happening is an ordinary economic decline.
Joe Biden said: “In my opinion, we will not have a recession,” since, according to him, the unemployment rate remains low and amounts to 3.6%.
President was supported by the head of the US Department of Finance, Junet Yellen, saying that the United States economy is slowing down, but this is not a recession, but a necessary phenomenon after rapid growth.
Economists, members of the Republican Party and even the heads of some cities do not agree with them. For example, the mayor of New York Eric Adams admitted that the United States entered into a recession.
“We are in such a financial crisis that you can’t imagine. Wall Street collapses, we are in recession,” Adams said. The slowdown in the American economy occurs against the background of the highest inflation and record public debt over the past 40 years.