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Aug 30, 2017

Warren Buffet: This Doesn't Feel Like a 3% GDP Economy: CNBC | Warren Buffet Watch


cnbc.com
 
Matthew J. Belvedere

Billionaire investor Warren Buffett 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 better-than-expected 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. Economists had expected a 2.7 percent advance.
"I would guess we're in a 2 percent growth economy now," Buffett said in interviews on "Squawk Alley" and "Squawk on the Street." "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 $19,000 GDP gain per person in the United States," added the chairman and CEO of Berkshire Hathaway.
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.
— Reuters contributed to this report.