U.S. GDP revised down to cooler-than-expected 1.3% growth in Q1
Darren415
U.S. gross domestic product was revised to +1.3% annualized growth rate in Q1 2024 from the Commerce Department's initial estimate of +1.6%, which is lower than the 1.5% consensus estimate.
The revision draws an even starker contrast with Q4 2023's robust GDP growth of 3.4%.
- The revision primarily reflects a downward revision to consumer spending.
- Private inventory investment and federal government spending were also revised lower, while
- state and local government spending, nonresidential fixed investment, residential fixed investment, and exports were revised higher.
- Imports were revised higher.
- That compares with a 3.3% increase in Q4 2023.
- Q1 PCE prices were revised to +3.3% from the initial estimate of +3.4% and compared with 3.4% consensus and 1.8% in Q4.
- Q1 core PCE prices were revised to +3.6% from +3.7%. That compared with the 3.7% consensus and 2.0% in Q4.
The personal saving rate was revised up 0.2 pp to 3.8%, the Department of Commerce's Bureau of Economic Analysis said.
Looking ahead to Q2 GDP, Renaissance Macro Research says to expect a different mix in growth. "For example, residential investment won’t be adding 0.6ppt to growth as it did in Q1. Would expect consumption to perk up as an offset. Growth isn’t getting away from the Fed," it said via X.
Status Of Banks' Unrealized Losses In Q1 Worsened After Brief Rate Cut Mania Relief
U.S. economy continues to expand overall, the Federal Reserve's Beige Book says
Consumer confidence perks up in May, The Conference Board says
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Most chief economists are upbeat about the prospects for a sustained rebound in global growth, with nearly 70% expecting a return to 4% growth in the next five years (42% within three years).
In high-income countries, they expect growth to be driven by technological transformation, artificial intelligence, and the green and energy transition.
- However, opinions are divided on the impact of these factors in low-income economies.
In terms of the policy levers most likely to foster growth in the next five years, the most important across the board are innovation, infrastructure development, monetary policy, and education and skills.
- Low-income economies are seen as having more to gain from interventions relating to institutions, social services and access to finance compared to high-income economies.
- There is a notable lack of consensus on the impact for growth of environmental and industrial policies.
Global economic outlook is brightening, WEF latest report says
Growth expectations have improved, though unevenly, across the globe.
- The survey reveals a significant boost in the outlook for the United States, where nearly all chief economists (97%) now expect moderate to strong growth this year, up from 59% in January.
- Expectations for China are slightly less optimistic, with three-quarters expecting moderate growth and only 4% predicting strong growth this year.
- By contrast, the outlook for Europe remains gloomy, with nearly 70% of economists predicting weak growth for the remainder of 2024.
- Other regions are expected to experience broadly moderate growth, with a slight improvement since the previous survey.
Some 97% of respondents anticipate that geopolitics will contribute to global economic volatility this year.
PRESS RELEASE • MAY 29, 2024
As gross domestic product (GDP) remains a popular criterion for determining the size and strength of a country’s economy, below is a list of the top ten largest economies in the world as of April 2024.
The top 10 largest economies in the world in 2024:
| Rank | Country Name | GDP (USD Billion) |
| 1 | United States | 28.78 thousand |
| 2 | China | 18.53 thousand |
| 3 | Germany | 4.59 thousand |
| 4 | Japan | 4.11 thousand |
| 5 | India | 3.94 thousand |
| 6 | United Kingdom | 3.5 thousand |
| 7 | France | 3.13 thousand |
| 8 | Brazil | 2.33 thousand |
| 9 | Italy | 2.33 thousand |
| 10 | Canada | 2.24 thousand |
*GDP is based on the data referred from the IMF Report and updated on April 2024
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