Despite a years-long “Bidenomics” campaign to grow the economy, the Biden administration announced on Thursday that inflation-adjusted Gross Domestic Product (GDP) for the first three months of 2024 was lower than predicted, opening up President Joe Biden to a fresh round of criticism.
Bureau of Economic Analysis numbers, posted to X in chart-form by the White House Council of Economic Advisers, showed this economic measurement that is known as “real GDP” grew by 1.6% in the first quarter on an annualized basis, below expectations of 2.5%.
Today’s report—the advance estimate of first quarter GDP in 2024—shows that real GDP grew by 1.6% in Q1, below expectations of 2.5%. Growth in Q1 primarily reflected contributions from consumption and private fixed investment. 1/ pic.twitter.com/verrExDrq8
— Council of Economic Advisers (@WhiteHouseCEA) April 25, 2024
Experts attributed the weaker-than-anticipated number to consumer spending growth dipping below estimates while inventories and net exports dropped. There was also 3.4% annualized rate growth for the personal consumption expenditures price index, a key inflation indicator gain that could discourage Federal Reserve interest rate cuts.
“These GDP numbers were shocking,” said Fox Business anchor David Asman. “We were expecting a 2.4% growth. The actual came in at 1.6 — a huge loss — and with rising inflation — even the Fed is admitting that inflation is not only sticky, it seems to be going in the wrong direction — that adds up to stagflation.”
FOX BUSINESS: "These GDP numbers were shocking. We were expecting a 2.4% growth. The actual came in at 1.6–a huge loss–and with rising inflation…that adds up to stagflation."
"That's something we haven't seen since the 1970's." pic.twitter.com/78Ks3Rjq0X
— MAGA War Room (@MAGAIncWarRoom) April 25, 2024
A statement from Biden on Thursday reacting to the GDP numbers focused on the long-term rather than the economic reality of the past few months that showed the lowest quarterly real GDP rate in more than a year.
“Today’s report shows the American economy remains strong, with continued steady and stable growth,” Biden said. “The economy has grown more since I took office than at this point in any presidential term in the last 25 years — including 3% growth over the last year — while unemployment has stayed below 4% for more than two years.”
Still, Biden said there is “more work to do,” noting that costs are “too high” for working families. He reiterated a “middle out and bottom up” mantra from his “Bidenomics” agenda while talking about tackling junk fees, housing costs, taxes, and health care.
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While Biden insisted congressional Republicans “have no plan to lower costs,” Sen. Rick Scott (R-FL) released a statement arguing that Americans are struggling because of Biden’s economic policies.
“Everywhere you look, companies are laying off employees and families are being stretched to the max by Biden’s raging inflation crisis and bad economy,” Scott said. “That’s why we are seeing job reports that month after month show a growth in part-time jobs while full-time jobs decline.”
Former President Donald Trump, who, like Biden, is running another campaign for the White House this year, delivered remarks on the GDP numbers while at a courthouse in New York City where he is on trial in a hush-money case.
President Trump: "As you probably have heard…the GDP is all the way down to 1.6% and it's heading south…gasoline is going way up, energy costs are going way up…this is Bidenomics–it's catching up with him." pic.twitter.com/zywDJj5ZlB
— MAGA War Room (@MAGAIncWarRoom) April 25, 2024
With the GDP “heading south” and energy prices “going way up,” Trump said, “this is Bidenomics! It’s catching up with him.”