Sharjah24 - AFP: According to official figures released on Thursday, the US economy grew more quickly than anticipated in the last few months of 2023, ending a solid year as President Joe Biden's reelection campaign gains steam.
The world's biggest economy expanded at an annual rate of 3.3 percent in the fourth quarter, boosted by a resilient jobs market and consumer spending, the Commerce Department said.
This brings full-year growth to 2.5 percent, an acceleration from the 2022 pace.
The performance will likely be welcome news for the Biden administration, which is pushing to convince voters that he has done a good job reining in costs while spurring investments to support the economy.
The latest data also fuels optimism that the United States is achieving a "soft landing," where inflation comes down on the back of higher interest rates, without triggering a damaging recession.
The fourth quarter GDP jump "reflected increases in consumer spending, exports, state and local government spending" and other areas, said the Commerce Department.
At the start of 2023, analysts expected consumer spending to lose steam as households drew down on accumulated savings during the Covid-19 pandemic and as borrowing costs stayed high.
Some warned that the country could enter a recession, but growth has been supported by surprising strength in the labor market, with low unemployment even as hiring starts to cool.
For an optimal experience, please
