The United States GDP grew by 4.1%, the fastest since 2014
Japan’s GDP growth rate was -0.2%
Apart from Russia, other G8 countries growth rate was less than 1%
Donald Trump takes credit for the growth
The US economy grew by 4.1% in the second quarter of 2018, faster and much more than any other country in the G8.
Fresh off a rough week for Donald Trump where a leaked phone conversation revealed details of a hush payment, Trump is pleased to announce that he orchestrated the fastest economic growth in the United States since 2014.
The United Kingdom and France only grew their GDP by 0.2%, Germany, Canada, and Italy’s GDP grew by 0.3% while Russia grew by 1.3%
Japan had the worst growth, boasting -0.2% in their GDP growth.
United States GDP Growth
According to Trading Economics, this growth was as a result of higher consumer spending and a surge in exports as companies raced to beat new trade tariffs imposed by trump.
G8 Economic Growth
The United Kingdom
While the US economy grew rapidly, other G8 counties experienced much slower growth.
The United Kingdom, troubled with their Brexit woes grew their GDP by 0.2% as a result of household expenditure rising and business investment shrinking which was slightly higher than their previous estimate of 0.1%.
Russia GDP advanced by 1.3% as a result in financial and insurance activities, real estate and public administration.
What Does This Mean?
Even though the United States has not seen a full year growth of more than 3% since 2005, economists believe that it is achievable this year with Trump asserting that
“This isn’t a one time shot…I happen to think we’re going to do extraordinarily well in our next report”.
Chief Economist Gus Faucher has written however that:
“If the US and its partners do implement substantial tariffs and other trade barriers, US economic growth is likely to be much weaker than this baseline forecast.”
Several economists have suggested that this growth os only short-lived, attributing much of the growth to a one-ff boost in exports and citing the 1.1% decline in housing investment.