This Week In The Economy: US Economy Grew Faster Than Expected, Inflation Cools Down, Strong New Home Sales, Spiraling German Business Sentiment, Central Bank Roundup

Welcome to a regular snapshot review of U.S. and international economic news that aims to 1) provide a window into the challenges and decisions facing businesses today, 2) determine the direction of economic policy — such as the speed at which central banks decide to raise interest rates, and 3) assess what the impact will be for consumers.

U.S. Economy Grew More Than Expected In Q4, All Of 2023

The U.S. Bureau of Economic Analysis reported this week that economic activity expanded by more than expected in the final quarter of last year, and grew at a faster rate for all of 2023 when compared to 2022.

Real GDP expanded by 3.3% in Q4 2023, less of a drop-off from Q3’s 4.9% growth rate. Economic activity increased by 2.5% in 2023, compared with an increase of 1.9% in 2022.