US development slows to 2.1% in 2022 as downturn fears loom

WASHINGTON: The US financial system grew at a slower tempo in 2022, the Commerce Division mentioned Thursday, as exercise eased within the closing months of the yr and recession fears loomed.

Financial exercise has been moderating because the US central financial institution hiked the benchmark lending fee seven instances final yr, in hopes of cooling demand and reining in prices as inflation surged.

The property sector has slumped, adopted by declines in manufacturing and retail gross sales.

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Towards this backdrop, the world’s largest financial system expanded 2.1 p.c for all of 2022, down from the determine in 2021, in line with Commerce Division knowledge.

“The rise in actual GDP in 2022 primarily mirrored will increase in shopper spending, exports,” and sure types of funding, mentioned the division in an announcement.

Within the October to December interval, the US noticed its gross home product rise at an annual fee of two.9 p.c.

This was down as properly from 3.2 p.c within the third quarter final yr, though higher than analysts anticipated.

The most recent quantity marks the second straight quarter of development after two rounds of contraction.