The United States economy has been growing at a steady pace in recent years. According to the U.S. Bureau of Economic Analysis, the country’s gross domestic product (GDP) grew by 4.9% in the third quarter of 2023, which is the strongest growth since Q4 2021. The growth rate in the second quarter of 2023 was 5.2% . The GDP is a measure of all goods and services produced in the country, and it is a key indicator of economic growth.
The growth in the third quarter of 2023 was driven by consumer spending, which rose by 3.1% . This is the biggest gain since Q4 2021. However, the growth in consumer spending was lower than initially anticipated due to a slowdown in services spending . Private inventories added 1.27 percentage points to growth, while both exports and imports increased less than initially anticipated . Nonresidential investment was revised higher to show a 1.4% rise as investment in structures surged way more than expected . Both residential investment and government spending were also revised higher .
On the expenditure side, personal consumption expenditures accounts for 68% of total GDP out of which purchases of goods constitute 23% and services 45%. Private investment accounts for 16% of GDP and government consumption and investment for 18%. As the value of goods exported (13.5%) is lower than the value of goods imported (16.5%), net exports subtracts 3% from the total GDP value .
The US economy expanded by 5.7% in 2021, the fastest pace since 1984, according to the Commerce Department . The GDP growth rate in Q3 2023 was higher than the preliminary estimate and forecasts of 5% . The US economy grew by 6.9% on an annualized basis during the period from October to December 2021 . The US economy expanded at its fastest rate in decades last year as it roared back from pandemic lockdowns
Us Economic Growth image
