The U.S. economy in 2023 grew more

The U.S. economy in 2023 grew more than expected in the past months, closing the year with expansion.

According to the figures from the Department of Commerce, the GDP grew by 2.5%, surpassing the 1.9% growth in 2022.

In this context, The U.S. economy in 2023 grew more than anticipated in the final months of the year.

Amid the ongoing presidential election campaign and President Joe Biden seeking re-election, the world’s largest economy experienced a growth rate of 3.3% in the last quarter on an annualized basis.

This indicates an expansion of the GDP over a 12-month period if the current conditions persist.

Regarding this, the U.S. economy in 2023 showed a moderation in economic activity, with an expansion dropping from 4.9% on an annualized basis in the third quarter of the year.

Nevertheless, this data still exceeds the 2% expected by the market, according to the consensus gathered by the consulting firm Market Watch.

The performance of the GDP was sustained by a robust labor market and consumer spending, impacting the U.S. economy in 2023.

Meanwhile, wages increased, and since mid-2023, the raises were higher than the price increases.

Meanwhile, consumption, a key driver of U.S. growth, remained strong despite the impact of inflation on purchasing power, providing another boost to the U.S. economy in 2023.

Amidst less optimistic predictions, the United States avoided a recession in 2023, a scenario frequently outlined as a possibility by economists, in a context of high-interest rates to curb inflation.

—The U.S. Economy in 2023: Biden’s Management?—

The government, leveraging this “soft landing” of the economy, attributes it all to what they have termed “Bidenomics.” Bidenomics refers to the GDP expansion despite high-interest rates, aiming to capitalize on the economic policy’s numbers.

Biden will likely face a showdown with former President Donald Trump (2017-2021), who, as part of his campaign arguments, highlights the robust health of the U.S. economy during his White House tenure, as well as the financial stability of families before the surge in prices.

Republicans blame Biden for inflation. However, polls measuring household confidence are beginning to improve. This issue is central to the upcoming November presidential election.

The U.S. economy in 2023 grew based on a strategy to contain inflation, which reached 9.1% in June 2022, a peak since the 1980s.

The Federal Reserve (Fed, central bank) raised interest rates 11 times between March of that year and July 2023.

Since then, inflation has receded to 3.4% on a 12-month basis, according to the December measurement.

The Fed’s goal is to bring it down to 2 percent. However, the central bank has already indicated that its objective is to cut interest rates this year, easing access to credit for Americans.

Read more: First task for Sheinbaum: Passenger rail transport in Mexico.