According to the agency’s experts, based on open data, the growth rate of the US economy during Joe Biden’s presidency fell by an average of 0.4 percentage points per year compared to Donald Trump’s presidency and amounted to 2.2%. This was reported by RIA Novosti on August 22.
The US economy is projected to grow by an average of 2.2% over Biden’s four-year presidency. The figure is based on the US Federal Reserve’s forecast for GDP growth this year, which is the final year of Biden’s presidency.
By comparison, GDP growth during Donald Trump’s presidency averaged 2.6 percent. However, the crisis years of 2020 and 2021 were not taken into account when calculating the average.
The US economy shrank by 2.2 percent in 2020 due to the pandemic. And in 2021 there was a sharp increase of 5.8 percent.
In 2021, GDP growth was rapid following the recession caused by the pandemic. Therefore, this year was not taken into account when calculating the average.
As Albert Koroev, head of the stock market expert department at BCS World of Investments, said, in 2021 there were many stimulus measures that also affected GDP growth. Because of this, the Federal Reserve was forced to sharply raise the key rate above 5%. This led to a cooling of the economy, which is what we are seeing now.
However, according to Anton Tabakh, chief economist at the Expert RA rating agency, this difference is not significant, especially if we consider it in the long term, taking into account the COVID-19 pandemic and the subsequent recovery period.
The US economy is likely to grow at about the same pace in the coming years. According to Andrey Tabakh, economic growth in the next two years is most likely to be between 2% and 2.5%. This is due to an increase in military spending and a decrease in interest rates by the Federal Reserve from the fall of this year until mid-2025, when the rate will reach 3.75% per year.
If we look at the average growth rate of the US economy under different leaders in a historical context, GDP grew fastest under Lyndon Johnson (1963-1965), averaging 5.2%.
GDP also grew rapidly under John Kennedy (1961-1963): 4.3%, Bill Clinton (1993-2000), 3.9%.
The US economy grew more slowly under President Gerald Ford (1974-1976): 1.5%, and under Barack Obama (2009-2016), 1.7%.
At the same time, the highest annual GDP growth occurred under Ronald Reagan: 7.2% in 1984. Since the 1990s, GDP grew most rapidly during the Clinton administration: 4.8% in 1999.
Moreover, the largest drop ever occurred in 2009 under Obama: 2.6%. This drop was even deeper than the coronavirus year of 2020.
Furthermore, GDP variation over the year took negative values under Reagan, Jimmy Carter, Ford and George HW Bush.
Source: Rossa Primavera
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