US first quarter growth revised higher

The growth in the United States has been revised upwards in the final reading of the GDP number today. The US economy grew at a substantially swifter pace in the first quarter than first thought, according to a third reading on gross domestic product. The US Commerce Department said that the world’s biggest developed market expanded at an annualized rate of 1.4 percent in the first three months of this year, which is a step up from the first estimate of 0.7 percent, and the second estimate of 1.2 percent. This is also the best reading since the first quarter of 2014, when economy grew by 2.2 percent.

According to latest reading from the Atlanta Fed’s GDPNow, which was last calculated on June 26th, the economy is set to grow by 2.9 percent. During the recent visit of Indian Prime Minister Narendra Modi, President Trump described India as the fasted growing economy and said that US is planning to give a competition to India. However, analysts estimate that the growth in the United States is unlikely to move beyond 3 percent. International Monetary fund (IMF) recently revised the growth prospect lower for the United States. The IMF, after a review of the US economic policy, said the Trump administration was unlikely to achieve its goal of annual GDP growth of 3 percent over a sustained period, partly because the labor market is at a level consistent with full employment. The International Monetary Fund yesterday cut its growth forecasts for the U.S. economy to 2.1 percent for both 2017 and 2018, compared to the previous estimate of 2.3 percent for 2017 and 2.5 percent for 2018.