US GDP increased by 2.3% on an annual basis, compared to 3.1% in the third quarter
The US economy ran a significantly slower pace in the fourth quarter of 2024, compared to the previous quarter and in terms of economists’ estimates.
In particular, US GDP increased by 2.3% on an annual basis In the last quarter of the previous year, after a 3.1% rose in the July-September quarter, according to figures announced by the Ministry of Commerce.
Economists’ estimates have spoken of 2.6%of US GDP.
Despite the slowdown at the end of 2024, however, the US economy seems to have defied the ominous forecasts for a possible recession due to a significant 5.25% increase in interest rates on the country’s central bank in 2022 and 2023 to address the inflation ejecting.
Inflation and the course of the economy were the main source of the Americans’ dissatisfaction, which was also reflected in the November 2024 ballot, when Trump was elected US president.
Meanwhile, yesterday, the Federal Reserve maintained its ranks unchanged in the range of 4.25%-4.50%, where they declined after three consecutive reductions, noting that inflation “has made progress” by retreating towards 2 % of the central bank. Fed Commander Jerome Powell noted that the economy remains “overall strong”.
Source: Skai
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