In the fourth quarter of 2023, the US economy grew at an annualized rate of 3.4 percent, beating estimates of 3.2 percent made a month earlier. This increase is primarily due to higher estimates of consumer spending and investment.
The latest report from the US Department of Commerce shows that a revision in consumer spending and non-residential fixed investment were the main factors contributing to the growth. However, these positive factors were partially offset by a downward revision in private equity investment. Despite this, the US economy, which is the largest in the world, grew at a rate of 2.5 percent during 2023, reflecting an improvement from the 1.9 percent growth recorded in 2022.
Now, in the current January-March quarter, the economy is projected to grow at a slower but still respectable rate of 2.1 percent, according to a forecasting model released by the Federal Reserve Bank of Atlanta. Despite initial worries about a recession, the US economy has defied expectations and is currently showing signs of stability and growth, prompting optimism that it is headed for a “soft landing” where inflation eases without triggering a damaging recession.
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