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This doesn’t feel like a 3% GDP economy: Warren Buffett

Aug 30, 2017 09:24 PM IST | Source: CNBC

The 3 percent threshold is what President Donald Trump and his administration want to achieve for gross domestic product growth.

Billionaire investor Warren Buffett, chairman and CEO of Berkshire Hathaway, told CNBC on Wednesday that U.S. economic growth does not feel like 3 percent.

The 3 percent threshold is what President Donald Trump and his administration want to achieve for gross domestic product growth.

The government reported on Wednesday that GDP increased at a 3.0 percent annual rate in the second quarter. The upward revision from the 2.6 percent pace reported last month reflected robust consumer spending as well as strong business investment.

“I would guess we’re in a 2 percent growth economy now,” Buffett said on “Squawk Alley.” “Every now and then we think it’s accelerating. And every now and then that maybe there’s a double dip or something. It just seems to be a couple of percent.”

“If we have 2 percent for a generation, 25 years, you would have a would have a USD 19,000 GDP gain per person in the United States,” he added.

Growth last quarter, according to the Commerce Department, was the strongest since the first quarter of 2015. It followed a 1.2 percent pace in the first quarter of 2017.

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