GLOBAL MACROECONOMIC DEVELOPMENTS
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- Economy Overview
- GLOBAL MACROECONOMIC DEVELOPMENTS
The American economy today is confronted with challenges at multiple levels. With the geopolitical and economic disruptions in the last few years, the business ecosystem has changed significantly. Businesses face tumultuous times. According to the "third" estimate released by the Bureau of Economic Analysis, real gross domestic product (GDP) increased at an annual rate of 2.0% in the first quarter of 2023 (table 1). In the fourth quarter, real GDP increased 2.6 %.
The consumer price inflation in the United States declined to 4.0 % in May 2023, the lowest since March 2021. This decline was largely attributable to a decline in energy prices. In addition, the core rate, which excludes volatile items such as food and energy, has slowed to 5.3 %, the lowest since November 2021. The softening of the inflationary spiral supported the case for the Federal Reserve to consider pausing its current cycle of monetary tightening.