America is still the economic powerhouse of the world.

According to the median forecast of economists surveyed by Bloomberg, US GDP increased 4.3% in the third quarter of 2023. This is the fastest growth of the world's largest economy in nearly two years, thanks to stable consumer demand.

The US economy is likely to grow at its fastest pace in nearly two years. (Source: Getty Images)

The above growth rate shows that the US is still the global economic powerhouse, while the European economy stagnates and Asia faces the slow recovery of the Chinese economy.

Personal consumption, the main driver of the US economy, is forecast to increase by 4%. The strong demand is challenging Federal Reserve officials after nearly two years of raising interest rates. While inflation has eased sharply from its peak, consumer price pressures remain nearly double the 2% target.

GDP data due on October 26 will not be enough to push the Fed to raise interest rates in November, but sustained spending momentum in the fourth quarter of 2023 could increase the likelihood of policy tightening later in the year.

In a speech last week, Fed Chairman Jerome Powell said that continued above-trend economic growth or tightening in the labor market could hamper progress on inflation and force the Fed to continue raising interest rates.

September 2023 income and spending data will be released on October 27. The core personal consumption expenditures price index, which excludes volatile food and energy prices that the Fed favors, is forecast to rise 3.7%.

This is the lowest increase since May 2021 and shows moderate price pressures.

Source: https://baoquocte.vn/my-van-la-cuong-quoc-kinh-te-cua-toan-cau-247164.html