The United States economy experienced significant growth in Q4 2024, exceeding expert predictions.
Q4 2024 Economic Growth Summary
The U.S. economy grew by 2.4% in the final quarter of 2024. Corporate after-tax earnings rose by 5.9%, marking the largest quarterly growth since 2021. According to Wells Fargo economists, this demonstrates the economy's resilience amid policy uncertainty.
Consumer Spending and Trade Balance
Consumer spending, accounting for nearly two-thirds of the economy, increased at a 4% pace, slightly below prior estimates. Companies raced to import goods ahead of new tariffs, boosting imports. The trade gap increased in February but remains elevated, potentially slowing GDP growth in early 2025.
Trade Policy and 2025 Economic Outlook
Economic growth in the fourth quarter of 2024 was robust, but a slowdown is expected in the coming months. Goldman Sachs and Morgan Stanley have revised their forecasts, citing global trade uncertainty. This may lead to decreased GDP growth in early 2025 as businesses and consumers cut spending.
The U.S. economy faces challenges from shifting trade conditions and uncertainties, highlighting the need for attention to future risk management.
