U.S. Economy Grew At Slowest Pace Since 2022 Last Quarter-But Still Far

The U. S. economy expanded at its slowest pace since the second quarter of 2022 to begin this year, reflecting a significant slowdown from 2023’s surprise rapid recovery but still exhibiting few signs of a recession.$28.3 trillion. That was the U. S.’ nominal GDP in the first quarter. The U. S. is by far the largest economy in the world, dwarfing the next-biggest economy, China at $18.5 trillion, and the third-largest, Germany, at $4.6 trillion. Real GDP accounts for inflation and currency exchange differences, while nominal just accounts for the full-dollar amount of output in a timeframe. Real GDP growth of about 2% is just about where a highly developed economy like the U. S. should expect to be, and median Fed forecasts call for 1.8% growth in the long run. But the steady growth is a surprise, considering just a year ago economists and policymakers alike called for close to zero growth as the Fed moved against inflation, hiking interest rates to their highest level since 2001. Higher rates typically bring extended economic downturns, as they make borrowing of all kinds more expensive, making consumers less willing to take on pricier loans for items such as cars and houses and companies more hesitant to take out loans to finance operations as interest expenses weigh on bottom lines.
All data is taken from the source: forbes.com
Article Link: www.forbes.com/sites/dereksau...
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