Lutnick Remarks on Removing Government Spending in GDP Data Raises Fears

Published On Mar 4, 2025, 5:04 AM

Howard Lutnick, the U.S. Commerce Secretary, has sparked concerns by suggesting he may alter how government spending is accounted for in GDP calculations. He intends to separate government spending from GDP to provide what he views as a clearer picture of economic activity. This statement comes amid increasing fears of a potential recession, as recent economic indicators have shown signs of slowing growth, including a decline in consumer spending and a rise in unemployment claims. Economists are wary that changes in GDP reporting may misrepresent the economy’s health, especially if it begins to show negative trends.