Growth Under Trump 'No Accident,' Says President's Economic Report Ahead Of Reelection Bid

WASHINGTON (UrduPoint News / Sputnik - 21st February, 2020) President Donald Trump released an economic report driving home the message that the steady US growth and millions of jobs created under him was no accident, an important argument that will shape his re-election campaign in November.

"Over the past three years, my Administration has championed policies to restore the United States' economic strength, propelling growth to levels far exceeding pre-election expectations. These results did not come about by accident," Trump said in the report released on Thursday.

The "Economic Report of the President," also touted that the about 7 million jobs created under him mark the largest ever under any US president.

Democratic rivals of the president in Congress, as well as many economists, have argued that Trump benefited from his predecessor Barack Obama who managed to heal the US economy from its worst recession ever.

Data shows that annualized growth under Obama averaged about 2 percent through the end of his eight-year term in 2016, after a negative 2.8 percent growth in 2009 - his first year.

Under Trump, growth has averaged 2.5 percent in his first three years in - short of the at least 3 percent or more promised by the president - although it has fared slightly better than the 2.4 percent averaged by the Obama administration in its last three years.

As for employment, data showed that while 6.6 million jobs were created under Trump, the average monthly gain was 182,000 jobs. During a comparable 36-month period at the end of Obama's tenure, some 8.1 million jobs were created, for an average monthly gain of 224,000.

Trump's critics also contend that the US budget deficit will return to above the $1 trillion mark this year as the president lays out a huge expansionary plan into defense and other non-social spending. The deficit had not crossed the $1 trillion mark since the end of Obama's first term in 2012.

The economic report released by Trump did acknowledge that the budget deficit will reach $1.08 trillion this year. But it also indicated that the figure will drop back to $966.1 million by 2021.

Trump's economic report tried to turn some of the factors behind the country's trade deficit as well to the administration's advantage, using the energy markets as an example.

"Historically, a rise in energy prices increased the trade deficit and costs for firms and households, sometimes pushing the US economy into a recession," the report said. "With energy independence, spikes in global energy prices continue to affect US households and businesses, but they now have a more muted effect on gross domestic product (GDP) because they do not inflate the trade deficit as they did when net imports were high."

The report said from 2000 to 2010 - which coincided with the tail-end of Obama's term - a $1 increase in oil prices reduced the US trade balance in goods by $0.83 billion. But from 2011 to 2019 - which covers the first three years of Trump's term - it reduced it by only $0.17 billion.

Trump also used the report to talk up his achievement of making the US energy-independent via shale-driven oil production during his presidency.

"This goal, initiated by President Nixon and pursued by every subsequent administration, was finally achieved under the Trump administration," it said. "In September 2019, the United States became a net exporter of petroleum, and the United States is projected to remain a net exporter for all of 2020, for the first time since at least 1949."

Trump's Democrat rivals, meanwhile, argue that the US shale boom began in 2013 under Obama - who was also responsible for ending a 40-year embargo on US crude oil exports that further liberated the energy industry.