US economy grows by 2.9% in Q4, but decline in domestic demand sparks recession fear
by SOURAV D | VIEW 418
Later this week, the US Commerce Department data had unveiled that the US economy's GDP (Gross Domestic Product) grew by 2.9 per cent over the fourth quarter of 2022, however, domestic demands rose by the slowest pace in more than a 2-1/2-years as recession frets spike. In the matter of the fact, latest data from the US Commerce Department on GDP growth, also had highlighted a growing underlying weakness, as nearly a half of growth in GDP came from a sharp increase in inventories, as consumers continued to scalp spending amid a sky-scrapping inflation surge, the Commerce Department report had underscored. Meanwhile, addressing to a growing risk of contraction in US economy in a near-term, a senior economist at BMO Capital Markets in Toronto, Sal Guatieri said, “The U.S. economy isn't falling off a cliff, but it is losing stamina and risks contracting early this year”.
US economy grow marginally over Q4, 2022
According to data from US Commerce Department, the GDP grew by a 2.9 per cent over last quarter of 2022, nearly a half of which had come from the inventories held by businesses, as domestic demand had slowed markedly.
Nevertheless, followed by the release of the data, another perspicacious bunch of analysts had forecasted that the US economy might just be able to evade a recession over first half of 2023, but would continue to face off a flurry of lags in growth and a recession in second half of 2023 would be inevitable.