USA – New Show of Success
By Carlo Barbieri
Commerce Secretary Wilbur Ross released the fourth quarter report and the closing of the year 2019 last week.
Real growth for the year reached 2.1% in the fourth quarter and 2.3% for the entire year 2019.
Since the beginning of the current government, the predictions of “analysts”, newspapers and TV stations as well as politicians have been of imminent recession and chaos in the economy.
It is fortunate that American citizens did not read these news that seemed more to root against the country than to analyze the economy and the effects of the policies that were being adopted.
Big mistakes were made, some damage was done, but fortunately they were wrong.
Despite serious problems like the Boeing 737 Max, the General Motors strike and the trade war with China, the country reached a GDP of $ 21.43 TRILLION, the highest of any country in the world.
With the closure of global agreements signed by previous governments and new ones that were recently signed, such as the first stage with China and the North American USMCA, the USA had less import growth, 0.9% the lowest since 2009 despite huge GDP growth.
This fact makes sense with the growth of the production of goods with a fantastic 4.7%, which has generated a level never reached in jobs in the last 50 years, causing the unemployment rate to fall to 3.5%.
It is worth mentioning that there are currently about 4.5 million open jobs due to lack of candidates.
Services also grew 1.7%, which shows that what pulled GDP was production and not consumption, which caused inflation to remain below 2%.
Even so, consumption grew by 2.6%, showing confidence in the economy and jobs by citizens, since the purchase of durable goods was 4.7%, identifying that consumers are trying to redo the quality and age of the goods that they use.
Personal income reached $ 18.6 trillion in 2019, up from $ 17.8 trillion in 2018.
Americans’ personal savings have risen 8% this past year. Americans saved $ 1.31 trillion in 2019, up from $ 1.21 in 2018.
Regardless of being an election year, we believe that the current economy generated by reducing taxes, eliminating bureaucracy and reducing state intervention can endure some more time.
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