Economic growth crushes expectations to close out strong 2023

The U.S. economy grew 2.5% in 2023, ending the year with slow but surprisingly strong growth despite widespread fears of a recession.

U.S. gross domestic product (GDP) grew at an annualized rate of 3.3% in the fourth quarter of 2023, according to data released Thursday by the U.S. Bureau of Economic Analysis (BEA).

Consensus forecasts showed that growth in the fourth quarter was much faster than economists had expected, who had expected a 2% annualized quarterly increase.

“Despite concerns of an impending recession, the U.S. economy continues to grow at an above-average pace as consumer spending remains resilient,” said global market analyst Jesse Cohen. ” he said. Investing.com, I wrote to Xthe platform formerly known as Twitter.

“That being said, we are starting to see some disinflation in the economy. What is the Fed doing now?”

The new data comes as President Biden and former President Trump explore a possible rematch in November's presidential election. Whether Biden or Trump wins could be heavily influenced by the state of the economy and how voters feel about it.

Biden and the Democratic Party hope that a strong U.S. economy, falling inflation and rising consumer optimism will encourage voters to embrace “Bidennomics” and reverse the incumbent's sluggish economic approval ratings. There is.

But President Trump predicts that the U.S. economy will collapse within the next 12 months, despite a flurry of recent positive data. He also said he would like to see a potential recession occur under a Biden administration and before Trump is re-elected and becomes president.

Updated at 8:52am