North American economy had grown 3.4% in the 4th quarter of 2023; reduction was driven by a drop in consumption

The GDP (Gross Domestic Product) of the United States grew 1.6% in the 1st quarter of 2024. The result is 1.8 percentage points lower compared to the 4th quarter of 2023, when the North American economy advanced 3.4% .

The BEA (Bureau of Economic Analysis) released the advance estimate for the period this Thursday (April 25, 2024). Here is the full text (PDF – 120 kB, in English).

According to the report, the reduction was driven by the drop in consumer spending, exports and spending by state and local governments, in addition to a slowdown in federal government investments.


Annual US inflation was 3.5% in March. The rate increased by 0.3 percentage points compared to the previous month, when it was 3.2% in the 12 months. Data for April will be published on May 15.

The interest rate in the country is in the range of 5.25% to 5.50%, the same since July 2023.

On April 16, the Fed chairman (Federal Reserve, the US Central Bank), Jerome Powell, said he was not confident in reducing interest rates in the country. He stated that the measure could take time.

“The recent data clearly has not given us greater confidence and instead indicates that it will likely take longer than expected to achieve that confidence”he stated.

The Fed’s monetary policy committee will meet from April 30 to May 1 to decide whether to maintain or change the country’s interest rates.


Leave a Reply