The US economy saw moderate growth in the first quarter of 2024, with Gross Domestic Product (GDP) expanding at an annualized rate of 1.6%. This result was below analysts' forecasts, which estimated an advance of 1.8%.
Despite the slowdown from the last quarter of 2023, when the economy grew 3.4%, the data shows that US economic activity is still expanding.
Q1 2024 GDP Key Points
- Consumption: Household consumption, the main driver of the U.S. economy, continued to expand in the first quarter, driven by a robust labor market and rising disposable income;
- Investment: Investment in fixed assets, such as factories and equipment, saw modest growth in the quarter due to business caution in the face of global uncertainty;
- Foreign trade: Exports and imports had a negative impact on GDP in the first quarter, due to the strong appreciation of the US dollar.
Challenges and prospects for the American economy
The US economy faces some challenges in the short term, such as rising inflation and the possibility of more aggressive monetary tightening by the Federal Reserve. However, labor market and consumer indicators remain positive, which suggests that economy is able to continue growing in 2024.
Other relevant information
- Disposable personal income increased by 4.5% in the first quarter, while the personal savings rate decreased;
- The US labor market remains strong, with low unemployment and steady wage growth.
GDP growth in the first quarter of 2024 shows that the US economy is still expanding, but at a slower pace than expected. Global challenges may affect the economy in the future, but domestic indicators remain positive.
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