La Jornada – The US economy moderated at the end of 2023, but remains strong

Mexico City. Although slowing during the latter part of 2023, the US economy has remained strong despite rising interest rates, which remained unchanged at 5.5 percent to combat inflation that is showing signs of downward resistance.

The United States, Mexico's main trading partner, recorded growth of 0.8 percent in the final quarter of 2023, four-tenths lower than the 1.2 percent growth recorded in the immediately preceding period, according to the third and final estimate published by the office on Thursday. Economic analysis of the Ministry of Commerce.

Thus, the world's major economy grew in the October-December period at 3.4% on an annual basis, which is better than the previous estimate of 3.2%, but lower than the 4.9% recorded in the previous three months.

The Bureau of Economic Analysis explained that the pace of the last quarter of the year and better outlook in terms of the outlook is due to increased consumer spending, exports, investment as a whole and public spending, which was already stimulated by the relative proximity to the electoral period.

Thus, the United States confirmed that the country grew by 3.1 percent in 2023, according to the final revision of GDP published by the Bureau of Economic Statistics (BEA).

This figure is higher than economists' estimates and higher than the 2.1 percent growth recorded in 2022, the year in which the world's first economy suffered a technical recession.

The increase in real GDP in 2023 was explained primarily by higher consumer spending, as well as increases in non-residential fixed investment, state and local government spending, and exports, as well as federal government spending, all of which were partially offset by declines in Real GDP. Fixed residential investment and inventory accumulation.

Private sector inventories fell but this trend was offset by the increase in imports, which are deducted from the GDP calculation and which have shown an erratic path over recent months.