Solid Growth is Expected in the American Economy in 2023

After a year of economic turbulence, the American economy sailed into 2023 with positive energy and signs of growth despite inflation, exorbitant interest rates, and mounting worries of an impending recession. According to a FactSet survey, it is estimated that gross domestic product (the most inclusive measure for determining economic output) grew 2.3% annually from October-December – providing hope for what the future holds economically!

The Impact of Last Year on the Economy was Heavy!

Despite an expected second consecutive quarter of growth, the American economy is forecasted to decelerate and eventually slide into a recession in the upcoming months. This result stems from high-interest rates imposed by the Federal Reserve, which has caused borrowing costs for consumers, businesses, and corporations alike, including mortgages, auto loans, and credit cards, to be more costly than usual. 

The housing market, highly sensitive to higher loan rates, has been adversely affected: Sales of existing homes have fallen for 11 months consecutively. From July through September, investment in housing was down a staggering 27% each year. Additionally, consumer spending, which accounts for around 70% of the entire American economy, is expected to soften alongside an otherwise strong job market in the coming months.

american economy

Despite This, Analysts Are Hopeful For The American Economy.

Undoubtedly, the American economy is off to a stronger start than it was in 2022. During the earlier part of last year, economic growth had decreased by an annual rate of 1.6% from January until March and even further with 0.6% between April and June. The two consecutive quarters saw worryingly low output that could have signified a recession starting up again.

Despite a shaky beginning to the year, the economy was able to recover over the summer due to robust consumer spending and an upsurge in exports. To everyone’s surprise, it grew at a noteworthy rate of 3.2% from July through September. This indicates that the American economy is likely to experience a stronger rise in the coming days of 2023.

Jose Sequeira

Strong media and communication professional with a MA in Broadcast Journalism from City University and a BA in Media Studies with Spanish from the University of Sussex. Started my career as a journalist I have been working for almost 10 years in different regional and national news channels along with assorted media and still now I am working for different digital content creators. I love staying up to date with the latest developments in the crypto world, and I'm always on the lookout for new and innovative blockchain projects. I believe that crypto has the potential to revolutionize the way we think about finance and money, and I'm committed to bringing the most important news and analysis to my readers. With my extensive knowledge of the industry and my ability to spot emerging trends, I'm confident in my ability to keep my readers informed and engaged in this fast-paced and rapidly changing space.

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