The U.S. economy grew at a 2.3 percent pace in 2019, according to the Bureau of Economic Analysis (BEA), the lowest rate of growth in Donald Trump's presidency.

The rate was a fall from 2.9 percent the previous year and below the 2.4 percent growth level in 2017.

Slowing global growth paired with an unpredictable trade war both took their toll on growth. But increased government spending helped prevent a steeper fall.

ADVERTISEMENT

A significant decline in investment growth also contributed to the lower growth last year. The increase in gross private domestic investment fell from 5.1 percent in 2018 to 1.8 percent in 2019. Critics of the 2017 GOP tax law have noted that it was supposed to push economic growth up by stimulating such investment.

"Rather than causing a flood of business investment that would trickle down to workers, today’s report shows that, in the wake of his tax cuts, business investment has declined for three consecutive quarters," House Majority Leader Steny Hoyer Steny Hamilton HoyerHouse Democrats postpone vote on marijuana decriminalization bill Democrats scramble on COVID-19 relief amid division, Trump surprise The Hill's Morning Report - Sponsored by The Air Line Pilots Association - Pence lauds Harris as 'experienced debater'; Trump, Biden diverge over debate prep MORE (D-Md.) said.

“President Trump Donald John TrumpBiden leads Trump by 36 points nationally among Latinos: poll Trump dismisses climate change role in fires, says Newsom needs to manage forest better Jimmy Kimmel hits Trump for rallies while hosting Emmy Awards MORE inherited a surging economy from his predecessor, but his policies have failed to sustain that pace of growth," he added.

Trump came to office promising regular growth of 3 percent, but the economy is expected to slow further in 2020.

Still, the growth remained above long-term expectations.

"While growth in 2019 was slower than that in 2018, it remained above what we consider to be the pace of long-term trend growth for the U.S. economy, which is around 2.0 percent," said Nationwide’s chief economist David Berson.

ADVERTISEMENT

Thursday's figures continued uninterrupted economic expansion that followed the Great Recession. Paired with a historically low unemployment rate and a soaring stock market, they are likely to boost Trump's chances at the ballot box in November.

"Today's report is just the latest evidence that President Trump's economic policies are working and the best economy in 50 years is not slowing down," said Alfredo Ortiz, president of the Job Creators Network, a conservative advocacy group.

"We should be doubling-down on the President's successful, pro-growth policies, including tax cuts and regulatory relief,” he added.

In the fourth quarter of 2019, the economy grew at 2.1 percent, the same as the previous quarter but roughly a point higher than the same quarter in 2018.

Thursday's figures comprise the first official government estimate of 2019 growth, but the BEA will release a revised estimate incorporating new data in late February before settling on a final figure in late March.

On Wednesday, the Federal Reserve said it would hold interest rates steady as inflation remained below the target rate and employment remained robust.

Federal Reserve Chairman Jerome Powell told reporters rates were unlikely to change absent a significant economic shift.

Updated at 12:12 p.m.