WASHINGTON, DC – In the third quarter, the United States experienced a significant economic boost with an annualized GDP growth of 4.9%, as reported today. This surge marked the highest rate since 2021, surpassing market analysts’ expectations, who had predicted an expansion of 4.7%.
The driving force behind this economic upswing was a notable 4% increase in household consumption, reaching its peak in two years. Despite higher interest rates, spending continued to rise due to inflation, which, although above the targeted rate, did not deter consumer activity. Government expenditure and investments in the real estate sector also played pivotal roles in this positive quarter, leading to economic activity more than doubling compared to the second quarter’s 2.1% GDP increase.
Miguel Risch, the Principal Attorney at Risch Law Firm, emphasized the significance of these figures: “Beyond mere statistics, this data provides essential reassurance to foreign investors and entrepreneurs seeking to expand their businesses into the United States. The robustness of the public sector and technical independence in strategic economic domains underscore stability and a favorable investment environment in the USA. This underscores the attractiveness of the American market and bolsters investor confidence.” said Risch.
Despite this robust economic performance, the majority of economists believe the Federal Reserve, the country’s central bank, is unlikely to raise interest rates next week, firmly dismissing the possibility of a recession at this time.