US Economic Growth at 2.1% As Coronavirus Concerns Grow

US Economic Growth at 2.1% As Coronavirus Concerns Grow

Thursday 27th February 2020 – 13:41 (GMT)

Figures released from the US Bureau of Economic Analysis have indicated that the US economy grew at a rate of 2.1% over Q4 2019. This was in-line with market expectations and is the second estimate ahead of next months final reading.

Analysts sited that the growth was primarily down to the US operating a lower trade deficit over the final quarter of the year, with exports rising 2% vs. the 1.4% anticipated. This GDP reading also matched that of July-September 2019 and disappointed some who had hoped there would be greater economic benefit from the US-China trade deal.

Elsewhere, Goldman Sachs lowered its US gross domestic product forecast for Q1 2020, down 1.2% from their original estimation of 1.4%. The cut came amid growing concern that coronavirus will limit global growth and have a negative demand on US supply and demand.

This was despite President Trumps best efforts on Wednesday when he assured Americans the risk from coronavirus remained “very low,” and said public health officials were preparing to do “whatever we have to,” to deal with the outbreak.