Q3 GDP Growth May Top 5%, But Slowdown Looms as Headwinds Persist

GDP growth may have topped 5% in Q3, exceeding expectations. Strong consumer spending and government subsidies have propped up the economy.

But growth is expected to slow in Q4 as high inflation, interest rates, and costs weigh on consumers and businesses.

Past periods of high GDP growth have sometimes preceded recessions. The economy grew strongly in 1990 and 2007 before downturns.

Economists remain cautious about growth prospects. Some still forecast a mild recession in 2023-2024 despite current strength.

Headwinds persist, including high rates, inflation, gas prices. These could constrain consumer and business spending going forward.