Us Economy Grows at 2.3% Annualized Pace in Fourth Quarter, Matching Estimates
The second estimate of fourth quarter GDP shows that the economy grew at a solid pace to cap off 2024. The US economy grew at an unrevised 2.3% annualized pace last quarter, on par with consensus estimates. The increase in real GDP in the fourth quarter primarily reflected increases in consumer spending and government spending that were partly offset by a decrease in investment.
- This modest economic growth may provide temporary relief from growing concerns about inflation and recession fears, but it also raises questions about whether the US economy can sustain this pace without exacerbating these issues.
- How will policymakers respond to these data points, given the ongoing pressure from President Trump's policies and the market's increasing expectations of a slower economic trajectory?