Growth Against the Odds
The US economy demonstrated remarkable resilience in the final quarter of 2023, surpassing many forecasts.
The Gross Domestic Product (GDP) grew at an impressive annualized rate of 3.3% in Q4, though down from 4.9% in the previous quarter, it was well above the anticipated 2%.
This growth rate is in line with pre-pandemic levels, highlighting the economy’s strength during this period.
Key Drivers of Growth
This unexpected upswing was fueled by good levels of consumer spending and significant government outlays.
The economy’s endurance is particularly significant given the Federal Reserve’s efforts to temper economic activity and bring down inflation.
Inflation has dropped from a peak of 9% in mid-2022 to 3.4%, highlighting the effectiveness of the Fed’s measures.