US GDP grows by 2% in the first quarter, above expectations

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The US economy grew by 2% in the first quarter, exceeding analysts’ expectations and above the first and second estimates of GDP which indicated growth of 1.1% and 1.3% respectively.

U.S. real gross domestic product increased at an annual rate of 2% in the first quarter of 2023, according to the third estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2022, real GDP increased by 2.6 percent.

The GDP estimate released today is based on more complete data than those available for the second estimate released last month. In the second estimate, real GDP increased by 1.3 percent.

The updated estimates mainly reflect upward revisions in exports and consumer spending, partly offset by downward revisions in non-residential fixed investment and federal government spending. Imports, which constitute a subtraction in the calculation of GDP, have been revised downwards.

The increase in real GDP in the first quarter reflected increases in consumer spending, exports, state and local government spending, federal government spending and non-residential fixed investment, partially offset by declines in inventory investment private equity and residential fixed investment. Imports have increased.