U.S. GDP Grows 2.8% in 2024 Amid Economic Uncertainty

The U.S. economy finished 2024 with a GDP growth rate of 2.8%, driven primarily by strong consumer spending. The Commerce Department reported a 2.3% annual growth rate in the fourth quarter, slightly below economists' expectations. Despite overall growth, business investment saw a significant decline, which raised concerns about future economic activity. Unemployment remained low at 4%, contributing to sustained consumer spending, while inflation pressures persisted, with the personal consumption expenditures index rising to 2.3% in the last quarter. The Federal Reserve chose to maintain interest rates, indicating a cautious approach in response to mixed economic signals. Overall, economists suggest that the U.S. economy is in a stable position, though uncertainty remains regarding the impact of potential new policies from the Trump administration.