New economic data showed that GDP grew last quarter well above experts’ predictions, but Republicans say there is more to the story.
The Commerce Department released the data Thursday reporting a 6.9% in Gross Domestic Product from October through December, a number higher than the 2.3% of the previous quarter. Experts had predicted a 5.5% GDP increase. Meanwhile, for the year, there was a 5.7% increase in GDP.
“The acceleration in real GDP in the fourth quarter primarily reflected an upturn in exports, accelerations in private inventory investment and PCE, and smaller decreases in residential fixed investment and federal government spending that were partly offset by a downturn in state and local government spending,” said the Commerce Department’s Bureau of Economic Analysis.
Republicans, though, point out much of these gains were merely a built-in rebound from his previous poor numbers.
“For the first time in his term, President Biden finally met quarterly GDP expectations — even if they were dumbed down significantly because of last year’s poor performance,” said House Ways and Means Committee Republican Leader Kevin Brady. “There are real red flags here, with raging inflation, a massive drop in real disposable income, and GDP growth driven primarily by a temporary build-up in inventories. Without that, the economy slogged along by less than 2 percent last quarter.”
Brady went on to point out that Americans report much less confidence in Biden’s work on the economy.
“Given that many Americans have lost confidence in his competency to heal the economy, it’s too soon for President Biden be celebrating with the challenges workers and families face,” Brady said.
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