President Biden said he is unsurprised by the worse-than-expected gross domestic product figures reported Thursday and offered assurances that the U.S. economy is on the right path.
Second-quarter GDP dropped 0.9%, putting the U.S. in recession territory after the second straight quarter of economic contraction.
“Coming off of last year’s historic economic growth – and regaining all the private sector jobs lost during the pandemic crisis – it’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation,” Mr. Biden said. “But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure.”
Mr. Biden cited a strong job market, and growing consumer spending as signs of optimism for the economy.
“My economic plan is focused on bringing inflation down, without giving up all the economic gains we have made,” he said.
First-quarter GDP contracted at an annual rate of 1.6%.
Some economists adhere to an informal definition of a recession as two straight quarters of negative growth.
The White House has pointed to the National Bureau of Economic Research’s definition of recession which includes indicators beyond GDP growth or decline.
Mr. Biden has faced intense criticism and declining poll numbers over his handling of the economy. The gloomy economic outlook also poses a challenge for Democrats who face an uphill battle in this year’s midterm elections.
— Dave Boyer contributed to this report.