US Economy Defies Recession Fears: 2022 Closes on a High Note with Continued Growth

US Economy Defies Recession Fears: Data released Thursday by the Bureau of Economic Analysis shows the economy expanded for the second straight quarter. The gross domestic product of the US economy grew at an annual rate of 2.9% in the fourth quarter of 2022, according to advanced estimates. That’s just above the 2.6% forecast of economists polled by Bloomberg.

The fourth quarter results mean the US economy slowed slightly from the third quarter’s annualized rate of 3.2%. While the United States closed out 2022 with a higher GDP, GDP contracted in the first two quarters of 2022.

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Both imports and exports decreased in the fourth quarter of 2022, at seasonally adjusted annual rates of -4.6% and -1.3%, respectively. The printout from the last quarter is good news for those who believe a recession can be avoided, which some experts believe it could.

The United States saw inflation, as measured by the consumer price index, slow month-on-month, based on annual changes, in the monthly part of the last quarter of the year. The three-month annual changes show that inflation could slow faster.

Overall, GDP grew at an annual rate of 2.1% in 2022, which is significantly lower than the economic growth of the previous year. GDP increased at an annual rate of 5.9% in 2021.

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Several areas of the economy contributed to positive growth in 2022, including consumer spending.

“Real GDP growth in 2022 primarily reflects increases in consumer spending, exports, private inventory investment, and nonresidential fixed investment that were partially offset by decreases in residential fixed investment and federal government spending. Imports increased,” according to a Thursday. The table’s statement came in the economic analysis.