FX.co ★ US economy skyrockets thanks to Trump

It is the second year of the Donald Trump's presidency, one of the most controversial leaders in US history. His promises given during the election campaign, despite skepticism and a lot of critical remarks, come true. The US economy grew at its fastest pace thanks to the Trump's trading war.

The media announced that in the second quarter the US GDP increased by 4.1%. Information continues to be discussed across the world, as this is the highest rate since 2014. Trump did something that Barack Obama couldn't do in the last years of the presidency.

Now, however, as always, the current American leader is pleased, proud of himself and very talkative. Estimating the statistics, Trump recalled, in case someone forgot, that he managed to keep the pre-election promise and bring the economic growth to 4%. He said that now the US economy may be the “greatest in history.”

What do analysts think about this? First, they operate with facts. The economy managed to skyrocket at the expense of consumer demand which grew thanks to last year's tax cuts. The activity of exporters also helped: they are in a hurry to deliver more goods before the tightening of international trade taxes.

But the data is too positive, so they decided to dilute it with some pessimistic forecasts, pointing out that such optimistic indicators should be perceived as a one-off success caused by temporary factors. In the future, such high figures may not appear.

Experts predict a decline to 3% in the second six months. In addition to experts' opinions, there is another reason to expect a slowdown in the economy. It's about raising the Fed's base rate which affects the overall level of rates in the market and makes loans to businesses and the population more expensive.