The US economy grew at a 3.3% annualized rate between October and December to round off a ‘standout’ 2023.

The fourth quarter saw a dip from 4.9% growth between July and September, but significantly outperformed economist expectations.

Across the whole year, the economy expanded by 3.1%, despite fears of a recession, causing the US economy to be labelled the ‘world’s fastest growing advanced economy’ in 2023.

Eswar Prasad, Economics Professor at Cornell University, said: “This GDP reading cements America’s position as the dominant driver of global growth.” Prasad also highlighted a contrast against the global economy as for the US: “Unexpected standout performance is the economic story of 2023 and a positive omen for what is otherwise shaping up as a gloomy year ahead for global growth.”

The growth figures highlight the resilience of the US economy despite the Federal Reserve’s action to raise interest rates to curb inflation.

Jason Kurtz, CEO, Basware, commented: “Despite speculation and fears of a recession, the US economy has bounced back strongly, giving businesses the confidence to continue ambitious growth plans and continue investment in innovation. As the world’s fastest-growing advanced economy, we must look to AI and automation to fuel growth for businesses, overhauling outdated manual processes in key business functions such as finance and accounts payable.”

“Enhancing efficiency with the goal of saving money, making money and reducing risk, coupled with economic stability, gives businesses the platform to continue driving forward and boosting competitiveness on the global stage.”

Other central banks across the world are currently debating when to cut rates as inflation begins to fall towards the universal 2% target. The European Central Bank has said it will hold eurozone rates at 4%, a record high, despite inflation falling towards expectations.