MARCH 31, 2025 – US GDP UP BY 2.4 PERCENT IN Q4 2024
The US economy grew by 2.4 percent in the last quarter of 2024, buoyed by consumer spending. For the entire year, GDP grew by 2.8 percent, down slightly from the 2.9 percent growth in 2023. The report also showed the personal consumption index rose at an annualized rate of 2.4 percent; up from 1.5 percent in Q3; and above the Fed’s targeted 2 percent inflation rate. The core PCE was 2.6 percent, compared to 2.2 percent in Q3.
It is unclear if the same pace of growth will be sustainable into 2025, given recent government workforce reductions, tariffs and mass deportations. Policy uncertainty will weigh on growth; this is already evident, given a sharp decline in consumer confidence in the last few weeks. The worry is the trade wars will push up inflation and disrupt investment spending.