America enjoys longest period of uninterrupted growth since WWII

The United States is enjoying its longest period of uninterrupted growth since the Second World War. 

The American economy has gone 121 months since its last recession after pulling out of the financial crisis in June 2009. 

However, economists say that the milestone has come at the expense of slower growth which may worsen in the future.  

Also, both the World Bank and the International Monetary Fund are warning of a global slowing of growth and other experts say an impending trade war with China could have a detrimental impact.   

There are fears that a recession may be imminent, particularly because of government debt levels. 

However, Gregory Daco, at Oxford Economics, told the Times that it was likely America would ‘face slower growth ahead, but that does not mean the expansion will die’. 

President Trump said at the G20 that the US would not be adding any more tariffs against China, however they will be keeping the current ones on $250 billion of Chinese imports in place.  

Mr Daco believes the tensions will have a negative impact, along with the boost from the president’s tax cuts of last year fading.   

But he also said that the US Federal Reserve may help to sustain the record-breaking boom.  

The US economy grew at a healthy 3.1 per cent rate in the first three months of this year.

However, economists believe growth has slowed sharply in the current April-June quarter to around two per cent. 

They expect similar meager gains for the rest of the year, a forecast that runs counter to the Trump administration’s expectations for strong growth above three per cent. 

The US is currently enjoying its longest period of sustained growth since the Second World War. Pictured, traders are seen working at the New York Stock Exchange

However, there are fears that a trade war with China could damage growth. U.S. President Donald Trump meets with China’s President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan on Saturday

There are fears that growth may continue to slow down in the US and around the world. In this picture, cargo containers are stacked on a ship at the Port of Los Angeles

The 3.1 per cent growth in the first quarter marked a rebound from a 2.2 per cent growth rate in the fourth quarter of last year. 

But it was slower than a sizzling increase of 4.2 per cent in the second quarter and a solid increase of 3.4 per cent in the third quarter last year.

For all of 2018, GDP grew 2.9 per cent, the best annual gain since 2015. 

Last year’s strength was powered by the implementation of a $1.5 trillion tax cut, President Donald Trump’s signature domestic achievement, and billions of dollars in increased government spending on the military and domestic programs Congress approved in early 2018.

However, the impact of the tax cuts and the higher government spending are expected to fade this year, leaving the economy growing very close to the 2.2 per cent average seen over the 10 years of the current expansion.

It comes after US stocks rocketed on Monday morning after Donald Trump and Chinese President Xi Jinping called off their trade war at the G20 Summit in Japan.

Following a highly anticipated meeting on Saturday, Trump said negotiations between the world’s two biggest economies were ‘back on track’ and he would hold off imposing threatened new levies on Chinese goods.

Trump surprisingly offered a concession on Chinese telecom giant Huawei, who the U.S. had banned over espionage fears.

The president’s historic visit to North Korea, where he met leader Kim Jong Un, also soothed geopolitical concerns and lifted spirits on trading floors.