US economic growth slows to 2.4% by end-2024

The US economy grew at a slower pace in the third estimate for the fourth quarter of 2024, though the figure came in better than the second estimate and analysts’ expectations, as investment and exports declined.

Official data released on Thursday showed that US real gross domestic product (GDP) expanded at an annualized rate of 2.4% in the fourth quarter, down from 3.1% in the third quarter.

The reading was stronger than the 2.3% forecast by analysts and the second estimate published in February, mainly reflecting a downward revision to imports.

For the full year 2024, GDP growth remained unchanged from the previous estimate at 2.8%, according to the data.

The Bureau of Economic Analysis kept its estimate for the personal consumption expenditures (PCE) price index at 2.4% year-on-year in the fourth quarter, the same as in the second estimate, accelerating from 1.5% in the previous quarter.

Meanwhile, core PCE inflation—which excludes food and energy and is the Federal Reserve’s preferred gauge of inflation—was revised down by 0.1 percentage point to 2.6%, after recording 2.2% in the third quarter.

The upward revision in GDP growth largely reflected stronger consumer and government spending, partially offset by weaker investment and imports.

However, it remains uncertain whether the US economy can sustain strong growth amid President Donald Trump’s trade war, plans to downsize the federal workforce, and his pledge to carry out mass deportations of undocumented migrant workers.