The US economy grew 0.7 percent annually in the first quarter of 2017. The expectation for the growth rate in the first quarter was about 1 percent. Growth which is realized below the expectations was the slowest growth since the year 2014, recorded in the US economy.
Comparing with previous period, the result does not seem very promising. The growth rate in the last quarter of 2016 was 2.1 percent. The reason for the slow growth is said to be the worst performance of the consumer spending since 2009 and the decline in investments in stocks.
Economists participating in the Bloomberg survey had expected the gross domestic product (GDP) growth to be 1 percent in the first quarter.
The US president Donald Trump has given the promise of 4 percent increase in the growth rate throughout his campaign. The latest data seems to force Donald Trump administration to make a 4 percent increase.
In order to realize his promise, Donald Trump administration, announced that they would sign the biggest tax reform in the history of the United States. With this tax reform the corporate tax rate will be reduced to 15 percent from 35 percent.
On the other hand, most of the analysts state that American gross domestic product (GDP) growth has been generally low in the first quarter of the year which has been a seasonal phenomenon. They anticipate the gross domestic product growth (GDP) of the US will be rising in the next periods.