Economy grows somewhat weaker than expected at the end of 2022

The US economy grew slightly weaker than expected at the end of 2022. Gross domestic product (GDP) increased by 2.6 percent on the year in the fourth quarter, the Department of Commerce announced on Thursday in Washington after a third estimate. In a second estimate, growth of 2.7 percent was determined. Bank economists had, on average, expected a confirmation of the duality.

Compared to the third quarter, the pace of growth was somewhat weaker. At that time, the economy had grown by 3.2 percent.

Growth in the months October to December was supported by increases in consumer spending, which were, however, lower than the previous estimate. Private investments have grown more strongly than previously determined. On the other hand, there was a headwind from the weakening real estate market. However, the decrease was smaller than found in the second survey.

US growth figures are annualized, i.e. extrapolated for the year. They indicate how much the economy would grow if the current pace continued for four quarters. This approach is not used in Europe, which is why the growth figures are not directly comparable. In order to approximate a growth rate comparable to that in Europe, one would have to divide the US rate by four. (dpa)

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