WASHINGTON, DC – House Ways and Means Chairman Jason Smith (MO-08) released the following statement in response to the first reading of 2022 Q4 GDP showing 2.9 percent annualized growth:
“After two straight quarters of decline in 2022, any economic growth is welcomed. Yet underlying demand and investment remains weak and half of the growth was really due to an increase in inventories – suggesting that dark clouds loom over 2023. Washington Democrats’ $10 trillion spending spree created a vicious cycle of deficit spending leading to high inflation and rising interest rates that are crushing families and small businesses. With unemployment rising in 39 states in December and leading economic indicators pointing to a recession, families face the threat of foreclosures in addition to historic inflation and rising interest rates.
“Unless Congress can get a handle on its spending problem, the American people worry the economy will not deliver for them. Americans have made clear that the status quo in Washington is unacceptable. I urge President Biden and Majority Leader Schumer to come to the table in good faith with House Republicans and join us in coming up with a common-sense solution to tackle Washington’s spending habit and put America’s finances and our economy on better footing.”
Sluggish Economic Growth Expected for 2023
Washington Democrats’ economic policies show dark clouds ahead for 2023, which will lead to more economic pain for families and small businesses.
- At the start of President Biden’s term, the Congressional Budget Office projected real GDP for 2022 would be 2.9 percent. Actual GDP for 2022 is 2.1 percent.
- CNBC Rapid Update forecast projects negative GDP growth in 2023 Q1 and sluggish growth for 2023 Q2 and 2023 Q3
- Philadelphia Fed: GDP growth will slow to 0.7 percent for all of 2023 and unemployment rate will increase to 4.2 percent