US Economy Defies Recession Forecasts with Strong 2023 Growth
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The US economy grew faster than expected in 2023, defying forecasts of recession. GDP growth was 2.6% and exceeded some pre-pandemic forecasts.
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Manufacturing investment reached record highs in 2023, with the Inflation Reduction Act playing a major role.
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Job growth cooled but remained strong, averaging 232,000 per month. Unemployment stayed below 4% for 22 straight months despite falling inflation.
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Inflation decelerated throughout 2023 thanks to retreating food, energy, and goods prices. Supply chain improvements explain 80% of disinflation.
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Real wages grew, wage inequality fell, women's labor force participation hit a record high, and racial employment gaps shrank to record lows.