Is the Economy Slowing?: GDP Revised Lower (A Few Issues to Think About)

Real GDP estimates declined to 1.3% in Q1, 2024 indicating some possible problems coming forward. While our GDP declined we China grew 5.3% which means we have some work to do on our policy side (Economic Times). There are a number of things that the U.S. has going for it that includes return of manufacturing, infrastructure developments, new advanced technologies, etc. Those things that could be hampering growth might include 1.) human capital issues, 2.) political/geopolitical issues, 3.) high debt, 4.) innovation/research push. 

None of these are in and of themselves the sole reason but they are contributing causes. The metrics may not also be completely accurate for the digital era leading one to make decisions on imperfect loosely correlated information to outcomes. New research on new metrics and economic models might be needed but we haven't found ways to do so yet. Revamping for innovation will require a new way of thinking about things and that can be hard for leaders to understand fully (Not that I understand fully either but one can recognize how change might be good.).

 You can read more about that in Gross Domestic Product, First Quarter 2024 (Second Estimate) and Corporate Profits (Preliminary)

"Compared to the fourth quarter, the deceleration in real GDP in the first quarter primarily reflected decelerations in consumer spending, exports, and state and local government spending and a downturn in federal government spending. These movements were partly offset by an acceleration in residential fixed investment. Imports accelerated." (BEA, 2024, Para 4)

Some other news US Economic Growth Eclipse China 2031