U.S. Economy Grew 2.3 Percent in Fourth Quarter

A bar chart showing gross domestic product, quarterly change at annual rates, adjusted for inflation, which rose 2.3 percent in the fourth quarter of 2024.

Growth slowed but remained resilient at the end of 2024, leaving the U.S. economy on solid footing heading into a new year — and a new presidential administration — that is full of uncertainty.

U.S. gross domestic product, adjusted for inflation, grew at a 2.3 percent annual rate in the fourth quarter of last year, the Commerce Department reported on Thursday. That was down from the 3.1 percent growth rate in the third quarter but nonetheless represented an encouraging end to a year in which the economy once again defied expectations.

The figures are preliminary and will be revised at least twice as more complete data becomes available.

For the year as a whole, measured from the end of 2023 to the end of 2024, G.D.P. increased 2.5 percent, far ahead of forecasters’ expectations when the year began. Robust consumer spending, underpinned by low unemployment and steady wage growth, helped keep the economy on track despite high interest rates, stubborn inflation and political turmoil at home and abroad.

“We ended on a pretty strong note,” said Diane Swonk, chief economist for the accounting firm KPMG. “It’s stunning how resilient and strong the economy has been.”

But the economy entered the new year facing a new set of challenges. The whirlwind start to President Trump’s second term — including sweeping changes to immigration policy, a spending freeze that was announced and then rescinded, and steep tariffs that could begin to take effect as early as this weekend — has increased uncertainty for both households and businesses. And while the full scope of Mr. Trump’s plans remains unclear, economists warn that his proposals on trade and immigration, in particular, could lead to faster inflation, slower growth, or both.