US economic growth was revised significantly upward in the first quarter

US economic growth was revised significantly upward in the first quarter

Photo: Afghan National Police

The US economy grew much more strongly in the first quarter of this year than previously thought. According to new figures from the US Department of Commerce, the economy grew by 2 percent. Previous estimates indicated growth of 1.3 percent.

This relates to the so-called year-on-year growth figure. In this case, growth during the quarter is artificially extended to a figure similar to the annual growth figure. According to the measurement method used in the Netherlands, GDP will rise by 0.5 percent compared to the previous quarter.

The stronger growth was mainly driven by higher-than-expected consumer spending in the world's largest economy. Consumer spending is the main driver of the US economy. Exports were also stronger than previously expected.

In the fourth quarter of 2022, the US economy showed growth of 2.6 percent. The US economy is facing some headwinds from interest rate increases by the central bank, which includes the Federal Reserve, to address high inflation. The Fed paused rate hikes this month, but has hinted at two more rate hikes later this year. Federal Reserve Chairman Jerome Powell said there is still a long way to go in the fight against inflation.

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