U.S. GDP Revised Up to 2.4% in Q4 2024 Despite Future Uncertainties

The U.S. Gross Domestic Product (GDP) was revised up to an annual rate of 2.4% for the fourth quarter of 2024, reflecting increases in consumer and government spending, according to the Bureau of Economic Analysis. While this revision represents an improvement over previous estimates, it also highlights concerns about future economic sustainability, particularly under the policies of President Donald Trump. Trade wars, workforce reductions, and potential deportations have introduced uncertainties that could impact future growth. The GDP growth for 2024 stood at 2.8%, just below the 2.9% growth seen in 2023. While the Consumer Spending Index rose, business investment saw a significant decline, indicating a mixed economic outlook. Analysts note that ongoing policy uncertainties and tariffs could affect consumer confidence and investment, slowing growth in 2025. Despite a healthy GDP report, fears of deceleration loom, with forecasts for Q1 2025 predicting a contraction of 1.8%. The economic context underlines a potential shift from post-pandemic recovery to caution in consumer and business activity.