Report: US Economy Grew by 3.3% in Q4 of 2023

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Facts

• According to the latest US Bureau of Economic Analysis (BEA) figures released on Thursday, the US economy grew at an annualized rate of 3.3% in the fourth quarter of 2023, higher than growth forecasts had predicted.¹
• This follows a gross domestic product (GDP) expansion of 4.9% in Q3. Meanwhile, core prices for personal consumption expenditures increased 2.7% on an annual basis, down from 5.9% a year ago.²
• The report shows that GDP grew at an annualized rate of 2% or more in the sixth consecutive quarter. Consumer spending, which accounts for nearly 70% of the economy, expanded at a 2.8% annual rate in Q4.³
• Furthermore, personal income increased $224.8B in the fourth quarter, up from $196.2B in Q3. Disposable income also rose $211.7B, compared to $143.5B in the third quarter.¹
• Government spending reportedly played a key role in record GDP growth, as federal consumption rose 6.2% year-over-year in Q3. The Federal Reserve is expected to lower the federal funds rate to 4.6% by the end of 2024, following recent rate hikes aimed at lowering inflation.⁴
• Despite significant growth in the last two quarters of 2023, central bankers forecast GDP to grow by 1.4% in 2024, the lowest since 2010 (excluding the pandemic year of 2020).⁵

Sources: ¹BEA, ²CNBC, ³Associated Press, ⁴Daily Caller and ⁵Forbes.

Narratives

• Democratic narrative, as provided by POLITICO. Despite all the attacks on the administration's economic approach, the US economy continues to shatter expectations and deliver for the American people under Pres. Biden's leadership. While Donald Trump boasts about his economic 'achievements' as president, he fails to acknowledge the economic boom that has taken place since he left office. Additionally, Trump didn't have to deal with global inflation, nor create a recovery strategy from COVID. Biden gets blamed for the mess left by Trump, while getting no credit for the economic recovery.
• Republican narrative, as provided by Federalist. Pres. Biden destroyed the economy so badly in his first two years that it would be impossible for things to get worse. Furthermore, despite some moderate GDP gains, inflation is still far higher than it should be, and middle-class Americans aren't receiving any benefits from this reported growth. Working families continue to pay significantly higher prices with little wage growth under the Biden administration. The economy isn't close to what it was under Donald Trump, and every American knows it.

Predictions