Azernews.Az

Qabil Ashirov

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White House National Economic Council Director Kevin Hassett said the US economy is on a strong growth trajectory, although he warned that external factors could prevent the Trump administration from achieving its economic growth targets.

According to Hassett, the US economy could grow by around 4%, rather than the administration’s 3% target, if there were no external headwinds. He based his assessment on continued gains in productivity and wages.

Administration officials, including Treasury Secretary Scott Bessent, have said President Donald Trump’s goal during his current term is to sustain annual US GDP growth of around 3%.

Private-sector economists, however, are forecasting economic growth of approximately 2%.

Rapidly rising investment in artificial intelligence has helped support US economic growth in recent quarters, contributing to stronger GDP performance.

At the same time, economists have identified a slowdown in labor-market growth as one of the key factors that could constrain economic expansion.

The differing projections highlight the uncertainty surrounding the US growth outlook, with the administration taking a more optimistic view than many private-sector economists. While productivity gains, higher wages and AI-related investment could provide further support, weaker labor-market growth and external economic pressures remain potential constraints on the pace of expansion.