In the fourth quarter of 2023, the US economy experienced growth at a 3.4 percent annualized rate, surpassing the estimates made a month earlier. This increase was primarily due to higher estimates of consumer spending and investment. According to the latest report from the US Commerce Department, consumer spending and non-residential fixed investment were the main factors contributing to this growth. However, this positive factor was partially offset by a downward revision in private inventory investment.
Throughout the year 2023, the US economy grew at a rate of 2.5 percent, reflecting an improvement from the 1.9 percent growth seen in 2022. Now, in the current January-March quarter, it is projected that the economy will grow at a slower but still respectable rate of 2.1 percent, as per a forecasting model released by the Federal Reserve Bank of Atlanta. Despite initial concerns of a recession, the US economy has defied expectations and is heading towards a “soft landing” where inflation decreases without causing a harmful recession. The outlook for the economy appears promising as it continues to show signs of stability and growth.
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