US Being Optimistic?
In Q2 2023, GDP grew at an annual rate of 2.4% and in Q3 2023, it grew at an annual pace of 4.9%
Even if the US economy is currently slowing down, it is nevertheless expanding faster than it might in the long run. In the second quarter of 2023, real gross domestic product (GDP) grew at an annual rate of 2.4%, according to data from the Bureau of Economic Analysis. In Q3 2023, the GDP grew at an annual pace of 4.9%, mostly due to increases in consumer spending and inventory investment.
According to BBC News, when the Federal Reserve hikes interest rates and the government reduces stimulus expenditure, analysts anticipate that growth will weaken this year. High inflation and the threat posed by novel COVID variations, like Omicron, are additional hazards.
Stimulus spending is a coordinated effort to increase government spending, lower taxes, and interest rates to stimulate an economy and lift it out of a recession or depression
After a revised increase of 227,000 jobs on August 3, the US labor market added 336,000 jobs in September. On the other hand, some analysts predict that a slight recession would result from the US economy cooling down in the first part of 2024.
Yet the expansion of jobs has slowed. Numerous concerns confront the US economy, including elevated interest rates, Omicron, and rising inflation. Corporate earnings are suffering due to the strengthening US dollar and rising oil prices. There are worrying undercurrents in the US economy, as the wealthiest 20%’s funds are the only thing keeping it afloat.
By late 2023, inflation was predicted to return to the 2% level as the demand for products declines and any outstanding supply chain problems are fixed.
In conclusion, it’s impossible to pinpoint a single cause for the US economy’s growth after September 2023, even though several factors could be at play.
