Gross Domestic Product

Recession talk is premature – but expectations for rate cuts in 2023 have gained traction. Gross Domestic Product (GDP) figures for the fourth quarter pointed to a slower expansion than in the third quarter. Moreover, the Price Index component – aka the "deflator" points to a considerable slowdown in price pressures.

The US economy expanded at an annualized rate of 2.9% in the fourth quarter, the US Bureau of Economic Analysis' (BEA) first estimate showed on Thursday. This reading followed the 3.2% growth recorded in the third quarter and came in slightly better than the market expectation for an expansion of 2.6%.