US Growth Rate 2.3%... Could It Hinder Trump's Reelection?

Despite Tax Cut Policies, Last Year's Normal Rate Fell Short by 3%
Major Achievement 'Shaken'
Primary Election Starts on the 3rd of Next Month... Key Points to Watch in the Presidential Race
Democratic Party Faces 'Dilemma' Amid Sanders Surge

U.S. President Donald Trump is showing a clenched fist at a rally held in Des Moines, Iowa, on the 30th. [Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Last year, the annual economic growth rate of the United States was only 2.3%, marking the lowest figure since the Trump administration took office. Analysts say this signals a red light for U.S. President Donald Trump, who is seeking re-election by emphasizing his "economic achievements." With the prevailing expectation that economic growth will slow down starting this year, economic issues are expected to become a key point of interest in the U.S. presidential race, which begins with the Iowa caucus on the 3rd of next month.

On the 30th (local time), the U.S. Department of Commerce announced that the U.S. Gross Domestic Product (GDP) growth rate for the fourth quarter of last year was 2.1%. The annual growth rate was 2.3%. While the quarterly figure met market expectations, the annual growth rate fell significantly short of the anticipated 3%.

President Trump set a goal of 3-4% average annual growth shortly after taking office. Based on a major tax cut at the end of 2017, the economy achieved a growth rate close to 3%, at 2.9% in 2018, but that was the limit. Recently, President Trump has stated his intention to promote economic growth through additional tax cuts and other policies. He claims that if the Federal Reserve, the U.S. central bank, lowers interest rates, 4% growth is possible, but the reality is different.

The Wall Street Journal (WSJ) evaluated, "Maintaining 2% growth is positive, but this data shows that the U.S. economic growth is slowing down at a slow and steady pace."

In a situation where his greatest achievement, the economy, is shaking, President Trump launched a preemptive attack. He attended a rally in Iowa on the same day and disparaged Democratic candidates. Iowa is where the presidential primary race begins on the 3rd of next month. It appears that he intends to preemptively block attention focused on the Democratic candidates who are fiercely competing in this "presidential election barometer" state.

The Democratic presidential primary race against President Trump is seeing Senator Bernie Sanders generate more momentum than expected. Former Vice President Joe Biden, who leads in national support, is expected to face a tough battle until the end of the primary if he cannot suppress Sanders' early momentum.

In a poll conducted by The New York Times (NYT) and Siena College from the 20th to 23rd of last month targeting registered voters in Iowa, Sanders received the most support among Democratic candidates at 25%. In this poll, former Vice President Biden received only 17% support.

Senator Sanders is also showing strength in the next primary state, New Hampshire. NBC News, reporting on a poll conducted jointly with Marist College Polling Institute, said Sanders ranked first with 22% support. In this poll, former Vice President Biden received 15% support.

Even though Sanders could not campaign in Iowa due to his participation in the Senate impeachment trial against President Trump, he surged ahead in the polls, causing rival candidates to scramble for countermeasures.

NYT reported, citing Democratic officials and volunteers, that former Vice President Biden is facing difficulties in Iowa. The political media outlet Washington Examiner also reported that the Democratic Party is trying to hide its anxiety over Sanders' rapid rise and potential victory in the primary, as he is considered a radical leftist.

In nationwide polls, former Vice President Biden leads Senator Sanders. In a national survey released by the Pew Research Center on the 30th, Biden received 26% support, while Sanders trailed by 5 percentage points with 21% support.

The Hill, a congressional media outlet, described Biden and Sanders as forming a clear two-strong candidate structure. However, billionaire and former New York Mayor Michael Bloomberg remains a variable in the Democratic primary. How much support he can secure by leveraging his financial resources could lead to another outcome.

This content was produced with the assistance of AI translation services.