The Commerce Department announced Thursday that the US economy grew steadily in 2022 despite high inflation, increasing interest rates, and an oil shock.
The US economy increased by 2.1% in 2012 and by 2.9% on an annualized basis in the last quarter, The Hill reported. The fourth quarter annualized growth numbers exceeded economists' estimates, who had predicted growth of 2.6% to 2.8%. They represent a little slowing from the 3.2% expansion seen in the previous quarter.
The Bureau of Economic Analysis (BEA) of the Department of Commerce said on Thursday that growing "real GDP in 2022 "was driven by rising consumer expenditure, "exports, private inventory investment, and nonresidential fixed investment."
In the fourth quarter, personal consumption increased by 2.1 %, which has been at or higher than 2 %since the second quarter of 2022. The increase of 1.46% in private inventories in the fourth quarter also significantly boosted GDP.
In 2022, the economy was still picking itself up after the pandemic's devastating effects. Trade and inventory imbalances greatly affected US GDP growth in the first half of the year.
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US Economy Growth Driven By Resilient Consumers
However, companies have reacted to supply chain issues, and customers have switched their spending from furniture, bikes, and other things to trips and eating out.
Morning Consult's chief economist John Leer noted that the "shockingly resilient consumer" was largely responsible for the impressive fourth-quarter US GDP growth, per CNN.
However, there is widespread agreement among economic analysts that a recession is possible this year. Almost two-thirds of economists polled by the World Economic Forum anticipate a downturn in the economy in 2023, NPR reported.
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