US Economy Surprises with Stronger-Than-Expected Growth Amidst Trade Tensions
The United States economy demonstrated robust growth in the second quarter, exceeding initial expectations and prompting calls from former President Donald Trump for interest rate reductions. Trump, expressing his views on his social media platform Truth Social, stated, “The result is much better than expected.You have to lower the rate now. Not to inflation,that people buy and refine their homes.”
The Department of Commerce attributed the increase in real gross Domestic Product (GDP) primarily to a reduction in imports, which negatively impact GDP calculations.The report also indicated a rise in consumer spending as a contributing factor to the economic rebound.
Mexico’s Economy Also Shows Resilience
In parallel, the Mexican economy, the second-largest in Latin America, experienced a year-on-year growth of 1.2% in the second quarter, according to data released by the National Institute of Statistics and Geography (INEGI). This performance surpassed projections, particularly in light of previous threats from Donald Trump to impose a 30% tariff on Mexican imports starting August 1, with the U.S. market being a primary destination for these goods.
Mexican President claudia sheinbaum commented on the economic figures during her morning press conference,stating,”The Monetary Fund (International),they see that he said that the economy was going to fall,that it was going to be less 0.3% I think they said, and from here we said: ‘They are wrong.’ The economy of Mexico is strong, it is solid.”
On a quarterly basis, Mexico’s GDP grew by 0.7%. This positive outcome was driven by a 0.8% quarterly increase in the industrial sector and a 0.7% rise in services. Conversely, the primary sector, encompassing agriculture and livestock, saw a decline of 1.3%.
RR AFP/EFE/EL ECONOMIST
