The economy is progressing slower than experts expected. According to the Commerce Department, the GDP grew at a 2.3% annualized rate in the second quarter, which is less than the 3% economists claim is needed. This was certainly an improvement from the 0.6% in the first 3 months of 2015, but it is less than economists had forecasted. In order to reach a 3% growth rate for the year, the economy would have to grow at a 4.75% rate during the final two quarter of 2015.
The last time the U.S. expanding at a growth rate greater than 3% was 2005. The lack of growth can be attributed to the 2008 recession and a less efficient economy. Furthermore, some analysts believe that the nation is losing its entrepreneurial drive. Firms that are less than a year old with at least one employee have decreased from 11% in the 1990s to 8%.
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