Despite Trump's claims, very few countries see 7 percent GDP growth

An auto carrier driver unloads a new Ram pickup truck in Gaithersburg Maryland

Real GDP increased by an annualized 3.0% in the second quarter of 2017 according to the second BEA estimate (previously reported as a 2.6% gain).

The U.S. economy rebounded sharply in the spring, growing at the fastest pace in more than two years amid brisk consumer spending on autos and other goods.

The department had previously estimated the nation's gross domestic product, the broadest measure of economic health, grew at a 2.6 percent growth rate. The Federal Reserve Bank of Atlanta's GDPnow model is predicting a third-quarter growth rate of 3.4 per cent. Growth has averaged a little over 2 per cent a year since the recession ended in mid-2009.

On the stump for an overhaul of the nation's tax system, President Donald Trump on Wednesday said that cutting taxes would "bring back Main Street" and spur the USA economy to a level of growth not seen since the Great Recession.

Spending by governments, which had grown 0.7 per cent in the initial estimate, was revised to a decline at a 0.3 per cent rate. While that was up from the 1.9 percent reported last month, economists said it was unlikely growth this year would breach Republican President Donald Trump's ambitious 3.0 percent target.

During last year's presidential campaign, Trump repeatedly attacked the Obama administration's economic record.

Touting the second-quarter growth pace, Trump said on Wednesday he was ready to work with Congress on tax reform.

"Underlying domestic demand in the economy is consistent with near three percent growth but the supply-side of the economy is not capable of delivering such a pace of growth at this point", John Ryding, chief economist at RDQ Economics in NY, told CNBC.

Hoffman attends an annual gathering of leading economists and investors each August at Camp Kotok in Maine. That was up from the government's original estimate of a 1.9% gain.

Retail sales and business spending data so far suggest the economy maintained its stamina early in the third quarter. However, analysts believe the pace of growth will bounce back once the rebuilding begins and oil refineries get back to full production, bringing down prices.

The recent estimate marked the fastest growth in two years, the release said. For the year a whole, I am now predicting real GDP growth of 2.2 percent, with 2.8 percent growth for the current third quarter.

Zandi is forecasting that growth in 2018 will be an even stronger 2.8 per cent. Therefore, net exports added 0.21 percentage points to real GDP growth. With that said, spending on motor vehicles remained softer than desired.

But economists said it did not alter the picture significantly.

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