In the first quarter, the U.S. economy experienced a slower growth rate than anticipated, with GDP rising by 1.6%, according to the Commerce Department's Bureau of Economic Analysis. This growth was primarily supported by consumer spending, contrasting with economists' expectations of a 2.4% increase in GDP.
Analysts had varied forecasts for GDP growth, ranging from a 1.0% pace to a 3.1% rate, but the actual performance fell short of these projections. Despite the deceleration in growth from the fourth quarter's 3.4% rate, the economy is still expanding above the non-inflationary growth rate of 1.8% considered by U.S. central bank officials.
While economic growth slowed, inflation accelerated, indicating that the Federal Reserve may not reduce interest rates before September. The International Monetary Fund recently revised its growth forecast for the U.S. in 2024 to 2.7%, up from 2.1%, pointing to robust employment figures and consumer spending as the driving forces behind the upgrade. This performance contrasts with earlier concerns of an economic downturn and highlights the resilience of the U.S. economy compared to its global counterparts.