The US Commerce Department said GDP growth in the world's largest economy hit 2.4% between April and June 2023, although analysts expect slower growth. This is also higher than the 2% increase in the first three months of 2023. Although economists have warned of the possibility of a recession as the US Federal Reserve (FED) raised interest rates rapidly in over the past year to curb demand and reduce inflation, but the economy proved more resilient than expected. The Commerce Department said the GDP increase reflected increases in consumer spending, non-residential fixed investment, state and local government spending and other sectors.

Some analysts think the US could see a mild recession in the second half of the year, but the likelihood appears to be fading based on data showing a strong labor market and unemployment rate. low, while inflation eased. As inflation cools, real wage growth is turning positive, providing a headwind for consumer spending, said Gregory Daco, chief economist at EY-Parthenon. consumers. However, the economy continues to face significant obstacles due to persistently high prices and costs, tightening credit conditions and rising interest rates. Mr. Daco warned union strikes, student loan repayments and corporate debt loopholes are also negative risks.

Earlier on July 26, Fed Chairman Jerome Powell told reporters that Fed members no longer expected a recession, although they still see "a notable slowdown in growth starting late last year." this year". This comes after the Fed raised interest rates for the 11th time since March 2022.