The economy grew 2.8% in 2024, according to the government’s final estimate, a year of growth that came as the Federal Reserve lowered interest rates in an effort to prevent a major slowdown.
The Bureau of Economic Analysis published the data, adjusted for inflation, in its fourth-quarter report on gross domestic product Thursday. This is the third and final revision of the data.
The data showed solid GDP growth during former President Joe Biden’s last year in office, slightly slower than that of 2023. It was also much slower than his first year in office, when the economy was rapidly reversing COVID-19-related shutdowns.
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 that the 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 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.
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 Cabinet 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.
