In the fourth quarter of 2023, the US economy experienced growth at a 3.4 per cent annualized rate, surpassing the 3.2 per cent estimates made a month earlier. This increase was primarily due to higher estimates of consumer spending and investment.
Throughout the year, the US economy, which is the world’s largest, grew at a rate of 2.5 per cent, reflecting an improvement from the 1.9 per cent growth seen in 2022. Now, in the current January-March quarter, the economy is projected to be growing at a slower but still respectable rate of 2.1 per cent, as per a forecasting model released by the Federal Reserve Bank of Atlanta.
The latest report from the US Commerce Department shows that upward revisions in consumer spending and non-residential fixed investment were the main factors contributing to the growth. However, these positive factors were partly offset by a downward revision in private inventory investment. Despite initial concerns of a recession, the US economy has defied expectations and is showing signs of stability and growth.
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