U.S. economy slows down: growth falls to its lowest level in two years

The economy of the United States is currently experiencing a slowdown, with growth reaching its slowest pace in almost two years, according to data from the Bureau of Economic Analysis. In the first quarter of the year, the gross domestic product (GDP) grew at an annualized rate of 1.4%, marking a sharp slowdown compared to previous quarters. Although this figure is slightly higher than expected by analysts, it reflects a downward trend that is concerning in the midst of an election year. Citizens' dissatisfaction is largely due to the sharp rise in prices during Biden's administration, influenced by the post-pandemic recovery, supply chain bottlenecks, and the crisis in Ukraine that has impacted food and energy prices. This complex economic scenario has become a central issue in the electoral campaign, especially in the first debate between presidential candidates Joe Biden and Donald Trump. The slowdown in real GDP is attributed to several factors, including slower growth in consumer spending, exports, and state and local government spending, as well as a slowdown in federal government spending. However, residential fixed investment has shown some acceleration, partially offsetting these movements. Nevertheless, imports have increased, challenging economic growth. Consumption has been one of the key drivers of the US economy, supported by job creation and savings accumulated during the pandemic thanks to public assistance and reduced spending amid lockdowns. However, recent data shows that the labor market is cooling off and accumulated savings have been depleted, leading to an increase in credit card usage and delinquency. The Federal Reserve has kept interest rates at their highest level in 23 years, between 5.25% and 5.5%, with the goal of combating inflation and achieving price stability. Despite these efforts, inflation continues to resist moderation, leading the Fed to reconsider its strategy and consider a rate cut before the end of the year. However, uncertainty persists, and the future of the US economy remains a matter of concern for analysts and citizens alike.