The US president said Thursday that his country's economy is "on track", despite GDP figures showing it had shrunk for the second time in a row stoking fears of a recession.

Iran PressAmerica: President Joe Biden said the US economy is “on the right path” on Thursday, hours after the Bureau of Economic Analysis announced that GDP had contracted for the second consecutive quarter, sending the US into a recession.

His remarks come as US gross domestic product (GDP) was shown to have contracted again in the second quarter of 2022, which has raised the risk of a recession in the world's largest economy.

US GDP shrunk by 0.9% between April and June, having already fallen by 1.6% in the first quarter of this year.

Economists usually define a recession as two consecutive quarters of negative GDP growth.

However, the Biden Administration - which is soon facing key mid-term elections - has claimed the economy is not in recession, since other key economic indicators, such as employment, remain strong.

Stocks fell Thursday as investors reacted to news that the US economy had shrunk, with the S&P 500 down 0.4% and the Dow Jones Industrial Average dropping 0.4%.

The GDP report for the last quarter pointed to weakness across the US economy. Consumer spending slowed as North Americans bought fewer goods. Business investment fell. Inventories tumbled as businesses slowed their restocking of shelves. 219

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