Amid economic slowdown in countries like the United Kingdom and Japan, the United States stands out for its strong economic recovery. White House Economic Adviser Lael Brainard made the announcement at a press conference on Thursday.
Expenditure and investment guidelines
According to Brainard, U.S. economic strength is largely due to healthy domestic consumption and investments in infrastructure and clean energy promoted by Joe Biden's administration. These measures have allowed significant improvement in the environment for companies and consumers.
“Because inflation has come down so quickly, we predict the environment will be very favorable for the United States,” said the director of the National Economic Council.
Contrasted with other developed economies
In contrast to the US economic situation, new data suggests that both the UK and Japan have unexpectedly entered recession. The gross domestic product (GDP) of these countries recorded a fall in the fourth quarter, after a decline seen in the third quarter.
According to Brainard, the difference in economic performance between the US and the other two countries is a result of the Biden administration's approval of the Covid-19 recovery package. The move allowed many Americans to return to work sooner and also helped small businesses.
Focus on productivity and employees
The White House adviser highlighted the importance of effective employee engagement and improving productivity to ensure long-term economic growth. In this sense, the investment policies promoted by the Biden administration play a fundamental role.
However, post-pandemic inflation remains a challenge. In this scenario, Brainard acknowledged the citizens' dissatisfaction with the high prices of daily commodities and said that the government intends to reduce such prices.
Adjustment in the economy
Brainard declined to comment directly when asked about the latest retail sales data, which showed a larger-than-expected drop in January. However, he noted that consumers are becoming more discerning in their purchases, which may put pressure on retailers to lower prices.
The adviser concluded his speech by pointing out that the US economy is healthier than predicted a year ago, with growth and inflation rates more favorable than those of other advanced economies. “With strong growth and a low and stable unemployment rate, we have never had a year in which inflation has fallen so quickly.“, he concluded.
