US real gross domestic product (GDP) increased at an annual rate of 2.3 per cent in the fourth quarter of 2024, This following a 3.1 per cent increase in GDP during the third quarter, according to the US Bureau of Economic Analysis (BEA) advance estimate released on Thursday. The growth in the fourth quarter was primarily driven by higher consumer and government spending, though it was partially offset by a decline in investment. Imports, which are subtracted in the GDP calculation, also decreased. Deceleration in GDP Growth Compared to Q3 The deceleration in GDP growth compared to the third quarter was mainly due to downturns in investment and exports, with a decline in imports as well. The price index for gross domestic purchases rose by 2.2 per cent in the fourth quarter, compared with a 1.9 per cent increase in the third quarter. The personal consumption expenditures (PCE) price index increased by 2.3 per cent, up from 1.5 per cent in the previous quarter. Excluding food and energy prices, the PCE price index rose by 2.5 per cent, compared with a 2.2 per cent increase in the third quarter. Annual GDP Growth in 2024 Reflects Modest Deceleration Teal GDP in 2024 increased by 2.8 per cent, slightly below the 2.9 per cent growth in 2023. This annual growth reflected increases in consumer spending, investment, government spending, and exports, alongside a rise in imports. The price index for gross domestic purchases increased by 2.3 per cent in 2024, compared with a 3.3 per cent rise in 2023, while the PCE price index grew by 2.5 per cent, down from a 3.8 per cent increase in 2023. Excluding food and energy, the PCE price index increased by 2.8 per cent, compared with a 4.1 per cent rise in 2023. Attribution: Amwal Al Ghad English Subediting: Y.Yasser
