Today, the Department of Commerce’s Bureau of Economic Analysis (BEA) released the fourth quarter and annual gross domestic product (GDP) numbers. The Bureau found that the real gross domestic product increased at an annual rate of 2.1 percent in the fourth quarter and 2.3 percent for all of 2019, continuing to beat expectations.
“Since the beginning of this Administration, critics have predicted doom and gloom for the American economy,” said Commerce Secretary Wilbur Ross. “They were wrong then, and they are wrong now. President Trump continues to unleash incredible growth in the American economy despite the effects of Boeing’s problems with the 737 MAX and the General Motors’ strike. GDP for 2019 is more great news for the American economy and is even better than what today’s numbers show due to those two special factors. Beyond this, Americans continue to experience tremendous increases in employment and wages that prime 2020 for further economic gains. When you add in the benefits of USMCA, the Phase One Deal with China, the two trade deals with Japan, and the re-working of the free trade agreement with South Korea, America is back and competing on the world stage.”
The GDP continues to beat performance predictions before the 2016 election, and there was other good news in the BEA report:
- The U.S. has the largest GDP of any country in the world, and it continues to grow at a sustained rate. U.S. GDP reached an all-time high in 2019 of $21.43 trillion.
- The growth of the goods GDP rose by an impressive 4.7 percent, while services was at 1.7 percent.
- Consumer spending increased by 2.6 percent last year and spending on durable goods surged by 4.7 percent in 2019.
- Personal income reached an all-time high of $18.6 trillion, up from $17.8 trillion in 2018.
- The personal savings rate increased to 8 percent for the year, with Americans saving $1.31 trillion in 2019, up from $1.21 trillion in 2018.
- The long period of massive import surges of goods is finally abating. For the year, imports of goods rose by only 0.2 percent, the lowest yearly increase since 2009.