Official data showed Thursday that the US economy recorded a noticeable recovery in the third quarter of this year, as the flexibility of the labor market helped boost spending and eliminate the possibility of a recession.
GDP growth recorded 4.9%, at its fastest pace since late 2021, according to Ministry of Commerce figures.
Analysts raised fears of a decline with the US central bank raising interest rates rapidly last year to fight inflation. But the world’s largest economy has so far defied these expectations.
A strong labor market that provided healthy wage growth was a major factor in this recovery, allowing consumers to continue spending.
The latest GDP rate represents an increase from 2.1% during the second quarter, and is also higher than the 4.0% that analysts had expected.
This also comes at a time when President Joe Biden is focusing on demonstrating his achievements on the economic front as he seeks re-election in 2024.
The Commerce Department said this uptick in growth reflects “accelerating consumer spending, private inventory investment, and federal government spending,” among other factors.
Biden praised the low unemployment rates in the United States, the slowdown in inflation, and continued growth, returning this to his economic plan, which he calls “Bidenomics.”
But opinion polls indicate that voters remain skeptical about his administration, adding to the challenges he faces in his bid for re-election next year.
AFP