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US GDP Growth Exceeds Expectations, Rises by 1.3% in Q1/2023

According to the latest report from the US Commerce Department, the gross domestic product (GDP) of the United States expanded by 1.3% in the first quarter of 2023. This figure surpassed analysts’ expectations, which had anticipated a growth rate of 1.1%. It also surpassed the initial estimate of 1.1%, signaling a stronger-than-expected economic performance.

The release of this second estimate comes after a challenging period for the US economy in 2022. During that year, the economy contracted by 1.6% in the first quarter and by 0.6% in the second quarter, officially entering a technical recession. However, the subsequent quarters showed signs of recovery, with a growth rate of 3.2% in the third quarter and 2.6% in the fourth quarter.

Taking a broader view, the US economy expanded by 2.1% over the course of the full year in 2022. This growth rate marked a slowdown from the robust 5.9% growth achieved in 2021, emphasizing the impact of the pandemic and various economic challenges faced during that period.

The stronger-than-expected GDP growth in the first quarter of 2023 reflects positive momentum for the US economy. The data indicates that economic activity has regained traction, potentially fueled by factors such as increased consumer spending, business investment, and improving labor market conditions.

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