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Trump: economic growth very sustainable

US Rep. Ilhan Omar (D-MN) (L) talks with Speaker of the House Nancy Pelosi (D-CA) during a rally with fellow Democrats before voting on H.R. 1, or the People Act, on the East Steps of the US Capitol on March 08, 2019 in Washington, DC. (AFP photo)
Traders work on the floor at the closing bell of the Dow Industrial Average at the New York Stock Exchange on July 19, 2018 in New York. / AFP / Bryan R. Smith

New official figures show the US economy grew at its fastest pace in nearly four years in the second quarter of this year, expanding at an annual rate of 4.1%.

The US Commerce Department said in a report on Friday that the economic boost was driven by rising consumer spending, exports and business investment over the quarter.

According to the report, consumer spending grew at an annual rate of 4% in the last quarter, up from just 0.5% in January to March. Business investment was 7.3% higher.

US President Donald Trump attributed the economic boom to his administration’s policies.

“These numbers are very sustainable, this isn’t a one-time shot…We’ve accomplished an economic turnaround of historic proportions…Once again we are the economic envy of the entire world,” he said at a press conference.   

This comes as economists warn that the growth is unsustainable, adding the figure which contributed more than 1% to the GDP gains was inflated partly by farmers seeking to get ahead of new trade tariffs on items such as soybeans.

They also said the evidence so far reveal that the benefits of the boom have disproportionately gone to the wealthiest Americans.

The growth in the second quarter comes after Trump’s tax cuts but before the fallout of his tariffs war against the US economic allies.

Experts say this is too early to predict the main impact of the tax cuts but warn there are signs that the measure may end up in the interests of only the investors instead of ordinary people in the US.

Reports say some 84% of all stocks owned by Americans belong to the wealthiest 10% of households and the top 1% of households own nearly 38% of all stock.



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