The economy in the United States grew slightly weaker than expected at the end of 2022. The gross domestic product (GDP) increased in the fourth quarter extrapolated to the year by 2.7 percent, as the Department of Commerce announced on Thursday in Washington after a second estimate. In a first estimate, growth of 2.9 percent had been determined. On average, bank economists had expected the initial estimate to be confirmed.

Compared to the third quarter, the pace of growth was somewhat weaker. At that time, the economy had grown by 3.2 percent. Growth in the months October to December was supported by increases in consumer spending, which, however, were lower than an initial estimate.

Private investment grew more strongly than initially calculated. Headwinds, on the other hand, came from the weakening real estate market.

US growth figures are annualized, i.e. extrapolated to the year. They indicate how much the economy would grow if the current pace continued for four quarters.

In Europe, this approach is not used, which is why the growth figures are not directly comparable with each other. To approximate a growth rate comparable to Europe, the US rate would have to be divided by four.