US GDP Growth Matches Expectations in Q4 2024

The United States' gross domestic product (GDP) experienced a 2.3% annual increase in the fourth quarter of 2024, as reported by the Bureau of Economic Analysis (BEA) in its second estimate. This growth rate aligns with both analysts' forecasts and the initial preliminary report, signaling a steady economic momentum.

Inflation Trends Upward

Inflation indicators showed a slight uptick, with the personal consumption expenditures (PCE) price index rising by 2.4% year-on-year, a 0.1 percentage point increase from the first estimate. The core PCE price index, which excludes food and energy prices, also saw a rise of 2.7% annually, up by 0.2 percentage points from the previous estimate.

2024 Economic Overview

Reflecting on the entire year, the US economy expanded by 2.8%, consistent with earlier reports. The PCE price index increased by 2.5%, and the core PCE inflation, excluding volatile food and energy prices, grew by 2.8% on a yearly basis, both figures remaining unchanged from prior estimates.