Washington, Feb 22 (IANS) The US economic growth rate will increase to 3.1 per cent in 2018 and remain above 3 per cent through 2020, according to President Donald Trump’s first official economic report to Congress.
“The Trump Administration is the first since that of President Ronald Reagan to see positive economic growth exceed its first-year forecast,” said the Economic Report of the President, released on Wednesday, written by the Council of Economic advisers, in a detailed analysis of economic policies by Trump’s staff, Xinhua reported.
“If fully implemented, President Trump’s economic agenda would lead to 3 per cent annual GDP growth on average throughout the next decade,” the report added.
“The headline in the economic report is that we’re not in a new normal of low growth, but we’re just in a normal period again where we can go back to growing about 3 per cent that we always expected,” said Kevin Hassett, Chairman of Council of Economic Advisers.
Economists, however, believe that a growth rate of 3 per cent is not sustainable for the US economy. According to the Federal Reserve, the long-term growth rate of the US economy is around 1.8 per cent, due to aging population and slower growth of productivity.
The real gross domestic product (GDP) expanded at an annual rate of 2.3 per cent in 2017, well below the 3 per cent Trump promised, according to data released by the Commerce Department.