The economy grew 2.8% in 2024, according to the government’s final estimate, a year of growth that came despite high interest rates by the Federal Reserve to limit the inflation still affecting households.
The data, adjusted for inflation, were published Thursday by the Bureau of Economic Analysis in its report for gross domestic product for the fourth quarter. This is the third and final revision of the data.
The data showed that President Joe Biden’s last year in office saw solid GDP growth that was a slightly slower than 2023. It was also much slower than his first year in office, when the economy was still recovering from the COVID-19 pandemic.
The final numbers also set a benchmark for President Donald Trump, who campaigned on turbocharging the economy. He will be pushing for higher economic growth in 2025 than what was experienced during Biden’s final year in office, although there have already been some economic headwinds, including concerns about a recession.
The report showed fourth quarter GDP was revised up by a tenth of a percentage point to a 2.4% annual rate.
This is the first GDP report since Trump began his second term, although it reflects the final numbers of Biden’s time in office.
The GDP numbers for 2024 now give us a full snapshot of how economic output performed under Biden’s tenure.
For reference, the economy expanded 2.9% in 2023, 2.5% in 2022, and 5.9% in 2021, which was the first year of Biden’s presidency and a time when the U.S. economy was rapidly rebounding from the pandemic shutdowns.
The latest GDP numbers indicate that the economy, and in particular household consumption, hummed right along despite the pressures of inflation and high interest rates.
But there have been some storm clouds gathering as of late.
STAGFLATION CHATTER DOGS TRUMP AGENDA
The Trump administration has been aggressive on trade policy, announcing tariffs against allies Mexico and Canada and vowing reciprocal tariffs in the coming week or so. The markets have reacted negatively to the tariff plans.
Additionally, Trump and his officials, such as Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, have conceded that there might be some economic turbulence, given the big changes.
