The U.S. economy grew at a surprisingly strong rate in the fourth quarter of 2023, easily dodging a recession that had been predicted by many analysts.
According to data released Thursday by the Commerce Department, the Gross Domestic Product (GDP) increased at a 3.3% rate — well ahead of the 2% projected by Wall Street Journal and Bloomberg.
The GDP for all of 2023 came in at an annualized rate of 2.5% thanks in part to strong consumer spending. Personal consumption expenditures were up 2.8% in the fourth quarter.
The rise in GDP also included increases in exports, state and local government spending, nonresidential fixed investment, federal government spending, private inventory investment, and residential fixed investment, according to the Commerce Department.
The strong numbers represent the resilience of the U.S. economy, which has overcome many obstacles to approach the “soft landing” prescribed by the Federal Reserve. The Fed is closing in its goal of 2% inflation and indicates that rate cuts may be in order in 2024.
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