Annual growth of the economy falls short of the Biden-Harris administration's forecast

Economic growth did not meet the expectations of the Biden-Harris administration. The Department of Commerce's (DOC) Bureau of Economic Analysis reported that gross domestic product (GDP) increased 2.8% in the third quarter of the year, 0.2% less than expected.

The DOC linked this growth to "increases in consumer spending, exports and federal government spending." However, some analysts such as Dan North, senior economist at Allianz Trade North America, blamed inflation as the main culprit for the economy not being at estimated levels.

"If you look at numbers like GDP growth or income or consumption or even employment, you could say, 'Gee, this economy is in pretty good shape.' The only thing that completely destroys that narrative is the inflation that consumers have had to deal with," North said.

"Does the average Joe care if GDP is 2.8% or 3.1%? No, they want to know how inflation affects them," he added.

Since Biden and Harris took office, wages have not kept pace with rising commodity prices. Since 2021, payrolls have increased by an average of 18%, while food and housing costs have soared between 22% and 29%.

The situation further indicates that the Biden-Harris administration has not managed the economy effectively. Polls show that many voters believe Donald Trump would handle economic issues, both macroeconomic and microeconomic, better than Kamala Harris.