HUNTSVILLE, Ala. (WHNT) — The Biden Administration is redefining “recession” ahead of a possibly damaging gross domestic product (GDP) report set to be released.
Several White House officials have spent the past week pushing back on the idea that the economy is in a recession based purely on the data that’s set to be released.
President Joe Biden says “We’re not going to be in a recession in my view.” He stated earlier this week during a virtual event focused on semiconductor legislation that he’s created millions of jobs since entering office and that the unemployment rate is one of the lowest we’ve had in history.
Economists are predicting that the effects of the coronavirus pandemic, including businesses being shut down and millions of workers staying at home, will cause the GDP to decline.
News 19 checked in with Huntsville city leaders to find out what the overall health of the city’s business landscape is — as well as what they’re seeing on the horizon.
Mayor Tommy Battle says this community is diversified with critical national needs such as missile defense, space exploration, the FBI, and more. He adds that The Great Recession, which occurred in 2007-2008, taught them that the key to our local economy’s long-term health was to diversify it.
“The most important thing we can do as a community — spend our money in the right way,” Battle said. “We’ve done that conservatively, which is something we’ve always done. We also have to spend our money in a way that’s investing in our future. If we invest in our future, we will continue to grow.”
It’s important to note that economists typically define a recession as occurring when the economy endures two or more consecutive quarters of decline, in terms of the growth rate of the country’s GDP.
The Bureau of Economic Analysis is scheduled to release second-quarter GDP data Thursday. If it shows negative growth, this will mark the second consecutive quarter where the economy contracted.