Under President Trump the US GDP Surpasses $19 Trillion for the First Time Ever
Guest post by Joe Hoft
Under President Trump the US economy is on fire. The stock markets are registering new all time highs once every four days!
On Friday again the ‘DOW’ reached another all time closing high. The DOW has increased 19% since the November 2016 election. The NASDAQ and S&P 500 are other major American stock indices that have reached all time highs since President Trump was elected.
The rationale for the excitement in the markets is supported by underlying fundamental measurements of the economy. One of the main economic indicators of a robust economy is GDP (Gross Domestic Product). According the US Bureau of Economic Analysis (BEA):
GDP is one of the most comprehensive and closely watched economic statistics: It is used by the White House and Congress to prepare the Federal budget, by the Federal Reserve to formulate monetary policy, by Wall Street as an indicator of economic activity, and by the business community to prepare forecasts of economic performance that provide the basis for production, investment, and employment planning.
Yesterday the BEA released its analysis of second quarter 2017 GDP:
Real gross domestic product increased at an annual rate of 2.6 percent in the second quarter of 2017 (table 1), according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 1.2 percent, (revised up from the original 0.7 percent growth.)
Under President Trump the second quarter annual GDP growth rate nearly doubled the rate from the President’s first quarter. Also, according the BEA, the US GDP surpassed $19 Trillion for the first time in US history under President Trump.
According to the BEA, at the end of 2016 the US GDP stood at $18.9 Trillion. At the end of the first quarter the US GDP rose to $19.1 Trillion. At the end of the second quarter the US GDP grew to $19.2 Trillion (all in current dollars). Under President Trump the US GDP has grown by more than $300 Billion in just two quarters.
Eight years ago President Barack Obama’s GDP results were not nearly as impressive.
As a matter of fact, in the first two quarters under President Obama, the US GDP shrank. At the end of 2008, the US GDP stood at $14.5 Trillion. At the end of President Obama’s first quarter in office the US GDP shrank to $14.4 Trillion and by the end of Obama’s second quarter in office the GDP shrank to $14.3 Trillion. President Obama’s economy shrank by more than $200 Billion in his first two quarters in office.
Percentage-wise President Trump also way outperforms President Obama in his first two quarters in office. Under President Trump the US GDP has grown by 1.2% in the first quarter and 2.6% in the second quarter. Under President Obama the US GDP shrank by an unheard of 5.4% in his first quarter and by .5% in his second quarter in office in 2009.
With these increasing GDP numbers it’s no wonder the stock market is excited about President Trump’s economy!