Our website uses cookies to enhance and personalize your experience and to display advertisements (if any). Our website may also include third party cookies such as Google Adsense, Google Analytics, Youtube. By using the website, you consent to the use of cookies. We have updated our Privacy Policy. Please click the button to view our Privacy Policy.

Strong economic performance in the United States

https://cached.imagescaler.hbpl.co.uk/resize/scaleHeight/815/cached.offlinehbpl.hbpl.co.uk/news/OMC/ThinkstockPhotos-672450320_edited-1-201805010914584451-20200331093556905.jpg

During the last quarter of 2024, the US economy grew at an annual rate of 2.3%, according to the Bureau of Economic Analysis. This expansion was below the expected 2.6% and represented a slowdown from the 3.1% increase seen in the previous quarter.

In the fourth quarter of 2024, the United States economy expanded at an annualized rate of 2.3%, as reported by the Bureau of Economic Analysis. This growth rate fell short of the anticipated 2.6% and marked a deceleration from the 3.1% growth observed in the third quarter.

Growth in the fourth quarter was mainly fueled by a rise in consumer spending and government outlays. As a major factor of the Gross Domestic Product (GDP), consumer spending stayed strong, indicating continued household consumption. Government outlays also played a positive role, with significant boosts in federal and state spending.

Quarterly Comparison Analysis

The 2.3% growth in the fourth quarter marks the slowest quarterly increase since 2018, a time when the economy expanded by 0.6% in that same period. Annually, the economy grew by 2.8% in 2024, just under the 2.9% expansion noted in 2023.

The 2.3% growth rate in Q4 represents the slowest quarterly expansion since 2018, when the economy grew by 0.6% in the fourth quarter. On an annual basis, the economy grew by 2.8% in 2024, slightly below the 2.9% growth recorded in 2023.

Numerous factors played a role in the tempered growth seen in the fourth quarter:

  • Reduction in Investment: A downturn in investment activities partially counteracted the benefits from consumer and government expenditure.
  • Trade Factors: Imports saw a decline in this time frame, which, though a negative in GDP calculation, suggests possible changes in local demand and global supply chain modifications.

Presiones Inflacionarias e Implicaciones Políticas

Inflationary Pressures and Policy Implications

Summary of the Labor Market

Labor Market Overview

Prospects for 2025

Observing the future, the economic forecast for 2025 offers a varied scenario:

Looking ahead, the economic outlook for 2025 presents a mixed picture:

  • Growth Projections: The Congressional Budget Office (CBO) projects a moderation in economic growth, with GDP expected to increase by 1.9% in 2025, down from an estimated 2.3% in 2024.
  • cbo.gov
  • Inflation Expectations: Economists anticipate that inflation will remain above the Federal Reserve’s 2% target, influenced by factors such as ongoing supply chain disruptions and policy decisions.
  • reuters.com
  • Policy Considerations: Proposed tariffs and stricter immigration policies could exert additional inflationary pressures and impact labor market dynamics, necessitating careful monitoring and policy adjustments. 
By Natalie Turner

You may also like

  • Trump’s approach to trade tariffs

  • Strong economic performance in the United States

  • Historic low in US home sales recorded in 2024

  • US economic performance remains strong