Let's break down the latest US Q4 GDP 2024 estimate. The US reported an estimate of 2.3% GDP growth for Q4 2024.
GDP growth = G + I + C + NE
Q3 GDP (Final estimate) = 0.86 + 0.16 + 2.48 + (-0.43) = 3.07 (3.1)
Q4 GDP (1st estimate) = 0.42 + (-1.03) + 2.82 + 0.04 = 2.25 (2.3)
What had changed?
We could see that the US government reduced its spending and the investment collapsed. The only factors still holding up the US GDP were consumption and net export which still increased marginally but these 2 positives couldn't make up for the significant declines in government spending and investment. Thus, the GDP growth declined in Q4 2024.
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