US Economy Posts Strong 3.4% Annual Growth for Final Quarter of 2023, Beats Previous Estimate and Defies Higher Interest Rates

US economic growth for the previous quarter sees slight upward revision to a robust annual rate of 3.4%

The US economy experienced a solid growth rate of 3.4% annually from October through December, according to the government’s report on Thursday. This was an upgrade from the previous estimate of 3.2% growth in the last quarter of the year. Despite facing higher interest rates, the revised measure of gross domestic product by the Commerce Department confirmed a slight deceleration from the previous quarter’s rapid 4.9% expansion rate.

The steady economic growth was driven by increasing consumer spending, exports, and business investments in various sectors. This marks the sixth consecutive quarter where the economy has grown at an annual rate above 2%. For the entire year of 2023, the US economy recorded a growth rate of 2.5%, which was an improvement from the 1.9% growth in 2022.

In line with these positive developments, experts predict that the current January-March quarter will see slower but still respectable annual growth rates for GDP. The Federal Reserve Bank of Atlanta forecasts that GDP will grow at an annual rate of 2.1% during this period, despite multiple interest rate hikes by the Federal Reserve to combat inflation and consistent job growth and inflation decline rates.

The combination of steady economic growth and diminishing inflation has raised hopes that the Federal Reserve may achieve a “soft landing” by curbing inflation without causing a recession.

Overall, these positive indicators suggest that while there are challenges ahead for

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