PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Advocate for Entrepreneurs and Small Business Comments on Slowing GDP Growth

By at 26 July, 2019, 10:40 am

Economy grows at 2.1% in Second Quarter

For Immediate Release

Washington, D.C. –  According to the U.S. Commerce Department, the nation’s economy grew 2.1 percent in the second quarter of 2019, representing a significant deceleration in growth from the first quarter. Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan issued the following statement on the latest data:

“Weak business investment is a significant drag on the economy and this needs to turn around, and quickly. Clearly the effects of trade policy and tariffs are taking their toll and undermining growth.

“For the past year we’ve said that the longer the trade dispute with China and tariff uncertainty persist, the deeper and more widespread the impact. So, here we are.

“But this is all fixable and can be turned around rather quickly.

“The good news is that business optimism remains relatively healthy, consumers are spending – their confidence is currently high, the American public feels generally good about the economy, and there’s been some recent positive economic data for June that needs to be turned into a long-term trend.

“Now is the ideal time for the Administration to ink a deal with China, move forward constructively with Congress to get USMCA approved as quickly as possible, and accelerate other trade deals.

“Given the fact that businesses will not likely see pro-growth policies coming out of the current Congress, and the unfortunate movement afoot to regulate two of our most successful industries – the bio-pharmaceutical and technology sectors, which are dominated by innovative small firms – the most powerful tool and strategy President Trump currently has is pro-growth trade policy. Access to global markets is critical for entrepreneurs, the growth of entrepreneurship and small business growth.

“We encourage the Administration to lower barriers to trade and positively conclude the two big items on the trade front, a deal with China and passage of USMCA, and aggressively pursue other trade pacts in order to expand opportunity for our nation’s entrepreneurs.”

SBE Council Analysis of Q2 GDP: See SBE Council chief economist Raymond Keating’s analysis of the Q2 2019 GDP data here, which covers specific numbers related to business investment, housing investment, IP products investment, the big swings in private inventories, and real exports.

Contact:

Karen Kerrigan

e-mail: kkerrigan@sbecouncil.org  

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 25 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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