Breaking news: United States GDP growth rate cut by less than half at 1.3% for Q1

By:
on May 30, 2024
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  • The US economy received unwelcome news today.
  • The Bureau of Economic Analysis revealed that estimates of Q1 2024 GDP dropped even more than expected.
  • The United States GDP growth rate rose only 1.3% this past quarter, 0.3%, lower than forecast.

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Today, the United States Bureau of Economic Analysis released their second estimate US Real gross domestic product (GDP) figures for Q1 of 2024.

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The news was grim for the US economy, with the new figure for Q1 of 2024’s GDP growth rate standing at a 1.3% increase.

Source: Bureau of Economic Analysis

This was a nasty shock for an economy with whispers of a coming recession already circulating.

Below analysts’ expectations

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This was below estimates. Previously, on April 25th the bureau had released an advance GDP estimate stating that GDP had likely increased at an annual rate of 1.6% in the first quarter of 2024.

This was a significant decline for GDP of more than half, with the previous quarter’s GDP increasing by 3.4% for Q4

Mind the gap

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It should be noted that Q1 GDP figures are traditionally far lower than that of Q4. Nevertheless, it should be noted that the gap between Q4 and Q1 seems to have widened year-on-year.

In Q1 of 2023, GDP grew at 1.1%, while Q4 of 2022 brought with it a GDP figure of 2.6%, 1.5% higher. This time around, 2024’s Q1 growth is far less, at a whopping 2.1% lower than the preceding quarter.

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