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Thndr Claps » U.S. Claps » Economy 🏢 » US GDP grows despite recession fears

US GDP grows despite recession fears

by Omar El Shorafa
January 27, 2023

The Clap
The US’s GDP in Q4 2022 increased by 2.9%, more than the expected 2.8%.

What
Despite beating expectations, GDP during Q4 increased slower compared to Q3 2022, when it recorded a 3.2% annual growth for the quarter.

Consumer spending, which accounts for almost 70% of GDP, increased by 2.1% during Q4, slightly less than in Q3. 

So What
Although the economy recorded higher-than-expected growth figures, the economy continues to slow down in growth, a huge sign of a recession.

Now What
The economy is expected to go into a mild recession in H1 2023 due to interest rate hikes.

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