The United States achieved strong growth in the third quarter of this year, with its rate rising to 4.3% according to a report published on Tuesday. President Donald Trump was quick to consider it proof that his policies are bearing fruit.
Analysts had been expecting a slowdown in economic activity, anticipating that GDP growth would fall from 3.8% in the previous quarter to around 3.2%.
The achieved growth rate represents an increase of 1.1 percent compared to the second quarter. Among the most prominent factors leading to it were “accelerated consumption” and an increase in exports and public spending, while investments saw a slight decline during this period.
The work of statistical agencies was disrupted by the government shutdown.
The publication of these initial estimates was delayed by nearly two months due to the government shutdown, which lasted from October 1st to November 12th and disrupted the work of statistical agencies.
Trump commented on these results via his platform, stating that “the Trump economic golden age has kicked into high gear,” referring to himself in the third person, and adding, “The economists were wrong, but Trump and some other geniuses were right.”
Trump: “There is no inflation”
In another post, he attributed these “fantastic economic numbers” to the tariffs imposed since his return to power, which have caused significant disruption to international trade and problems for the industrial sector. Trump also repeated his famous claim, “There is no inflation.”
Amid opinion polls showing growing discontent among voters frustrated by the high cost of living, the government confirms that taxpayers will benefit from additional tax exemptions next year. However, one analysis viewed the impact of these tax exemptions on growth in 2026 as “moderate.”
An analyst noted that “this strong GDP growth is an additional reason for the Federal Reserve (the US central bank) to prefer the status quo at its next meeting.”
Lowering interest rates to boost growth and profits
Financial markets were still hoping that the Federal Reserve would resort to lowering interest rates on January 28th to boost growth and profits.
GDP has experienced fluctuations so far, with a sudden contraction (-0.6%) recorded at the beginning of the year, resulting from a significant increase in imports in anticipation of tariffs that President Donald Trump was imposing. However, the second quarter saw opposite results, as a decrease in imports and continued consumption at the same pace contributed to an economic recovery.
A number of economists considered the achieved growth to be unbalanced, as it relies primarily on investments in the field of artificial intelligence and the construction of data centers, while traditional sectors are facing difficulties.
