Larry Kudlow, President Trump’s top economic adviser, touted the second quarter’s Gross Domestic Product number saying he doesn’t see any end in sight to the strong economic growth.
The U.S. economy expanded at 4.1 percent during the April to June time period, marking its strongest growth since the third quarter of 2014, The Hill reported.
Kudlow dismissed the naysayers on Friday who say the 4.1 percent GDP growth is unsustainable, noting the lower tax rates for businesses and individuals passed at the end of last year, as well as other pro-growth policies.
“I don’t think this is the end of the numbers,” he told Fox News. “I was watching some TV this morning saying, ‘Wow, they got one, but it’s not sustainable’… Bulletin, it is sustainable.”
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Kudlow explained, “We’ve lowered tax rates, we’ve rolled back regulations, we’ve unleashed energy, we’re moving to fix the broken world trading system. You can see big numbers on capital spending, business investment.”
He predicted wage increases will also come “for ordinary working folks around the country. This is a good story.”
“My hunch is it’s going to go on for quite a while. It’s not just one quarter,” said Kudlow.
The former Reagan administration economist also lauded the nation’s strong economy during a news conference with Trump at the White House on Friday.
“I just want to note in the numbers — and this is becoming a trend — business investment is booming. Nine to ten percent growth in the first half of this year. I believe that’s going to continue,” said Kudlow.
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“Why do I talk about business investment? he asked. “Well, that’s the key to productivity, which is the key to growth, which is the key to rising real wages and very strong jobs.”
Kudlow concluded, “And that’s why I agree with the President, this is a boom that will be sustainable. Frankly, as far as the eye can see, this is no one-shot effort.”
At the news conference, Trump relayed, “We’re on track to hit the highest annual average growth rate in over 13 years. And I will say this right now, and I’ll say it strongly: As the trade deals come in one by one, we’re going to go a lot higher than these numbers. And these are great numbers.”
I am thrilled to announce that in the second quarter of this year, the U.S. Economy grew at the amazing rate of 4.1%! pic.twitter.com/xeAPwAAOXN
— Donald J. Trump (@realDonaldTrump) July 27, 2018
He noted that growth during both the administrations of Obama and George W. Bush averaged just over 1.8 percent.
“By contrast, we are now on track to hit an average GDP annual growth of over 3 percent, and it could be substantially over 3 percent,” Trump stated.
The president also proudly highlighted that the U.S. trade deficit shrank by $52 billion during the second quarter.
“That’s a tremendous drop,” Trump said. “We haven’t had a drop like that in a long time. You’ll have to go back a long time before you find it.”
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