In the first quarter, GDP grew 2.3%. While the number exceeded some expectations, GDP has yet to exceed 3% growth. This is a dilemma for the Fed, which needs to raise interest rates to protect against the next recession—whenever it comes—but is still dealing with slow growth that doesn’t seem to be stimulated by much. Low interest rates haven’t pushed GDP above the 3% mark, and the tax plan has yet to fuel GDP growth, as intended. To find out more about the stagnant growth and why this affects the real estate market, we sat down with Steve Hovland of research firm HomeUnion for an exclusive interview.

GlobeSt.com: What drove GDP growth above expectations in the first quarter?

Steve Hovland: One of the largest contributors to GDP growth in the first quarter was fixed investment in nonresidential structures. This one segment accounted for 0.76% of the 2.3% growth. Financial services and healthcare were also major contributors to growth. Consumer spending fell to the lowest level in five years, which provides some optimism for future growth.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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