US economy closed 2022 with growth

The United States economy closed the year 2022 with a growth of 2.1 %, sustained mainly by the consumption of the population, despite the lower purchasing power in a context of inflation. However, now the question is whether or not the world’s greatest power will enter a recession in 2023.

According to official data published on Tuesday, the Gross Domestic Product (GDP) expanded by 2.1% in 2022 compared to 2021. In 2021, the country had the largest annual economic expansion since 1984: 5.9 %, largely due to as the base of comparison was the year 2020, when the pandemic caused the largest retraction of GDP since 1946 (-3.5 %) and two months of recession.

In the fourth quarter of last year, the US economy grew by 2.9 % in annual projection, the measure used in the United States that projects 12-month growth based on conditions prevailing at the time of measurement. However, if quarter-over-quarter growth is compared, the expansion would be only 0.7 %.

Despite the fact that GDP performed better than expected, some experts believe that two quarters of GDP declines are enough to call for a recession. However, many economists and the government also consider the strength of the labor market and other factors, pointing out that there was no recession in the United States last year.

In any case, the future of the US economy will remain a hot topic as the new year approaches, with rising inflation and an uncertain job market due to the pandemic. It is important to closely monitor this data so that you can predict the future of the US economy and take the necessary steps to deal with any economic challenges that may arise.

Source: dpa

(Reference image source: file)

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