November 23, 2024

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Businessman |  US economic growth surged sharply in the first quarter…

Businessman | US economic growth surged sharply in the first quarter…

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In the first quarter of this year, the US economy grew significantly faster than previously thought. According to new figures from the US Commerce Department, the economy grew by 2 percent. Earlier estimates showed growth of 1.3 percent.

AP

June 29, 2023

This is the growth figure on an annual basis. Additionally, growth in a quarter is artificially stretched to a figure comparable to annual growth. According to the measurement system used in the Netherlands, GDP would have increased by 0.5 percent compared to the previous quarter.

The strong growth was mainly driven by higher-than-expected consumer spending in the world’s largest economy. Consumer spending is the main driver of the US economy. Exports were also stronger than previously expected.

In the fourth quarter of 2022, the US economy showed an additional 2.6 percent. The U.S. economy is experiencing a bit of a slowdown as the Federal Reserve hikes interest rates to combat high inflation. The central bank paused rate hikes this month, but hinted at two more rate hikes later this year. Federal Reserve Chairman Jerome Powell has said there is still a long way to go in the fight against inflation.

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