Trump predicts US GDP to top five per cent next quarter

WASHINGTON: President Donald Trump predicted US economic growth would soon hit above five per cent in a bullish speech hailing his administration’s business record.

Speaking to business leaders at a lavish dinner party at his New Jersey golf course, Trump said growth “could be in the fives” by the next quarter.

“Nobody thought would be anywhere above, even close to 2 ( per cent), and we’re at 4.1. And I think we’re going much higher,” he said.

“We anticipate this next quarter to be, this is just an estimate, but already they’re saying it could be in the fives,” he added.

With the size of the American economy now surpassing US$ 20 trillion, GDP expanded by 4.1 per cent in the April- June quarter, making the United States the fastest-growing of advanced countries, according to a government report.

Nobody thought would be anywhere above, even close to 2 (per cent), and we’re at 4.1. And I think we’re going much higher. Donald Trump, US President

The second quarter acceleration – the highest in four years – came in part after the injection of stimulus and Republican tax cuts.

But economists warned it could be a blip caused by temporary factors, including a one- off bounce produced by Trump’s trade confrontation with China.

The White House is counting on faster growth to pay for December’s sweeping tax cuts by generating higher revenues.

But federal tax receipts are already plummeting, widening the federal budget deficit, just as the costs of borrowing increase due to mounting interest rates. — AFP