Blackstone Chairman, CEO and co-founder Stephen Schwarzman provides his 2024 economic outlook, his thoughts on commercial real estate, capital market activity and downside risks to A.I.
The U.S. economy grew at a faster pace than expected at the end of 2023, underscoring its resilience even in the face of still-high inflation and steep interest rates.
Gross domestic product, the broadest measure of goods and services produced across the economy, grew by 3.3% on an annualized basis in the three-month period from October through December, the Commerce Department said in its first reading of the data Thursday.
That is far higher than the 2% increase forecast by Refinitiv economists, although it marks a notable drop from the 4.9% growth rate notched during the third quarter.
“GDP has four cylinders, and the fourth quarter fired on them all,” said Robert Frick, corporate economist with Navy Federal Credit Union. “Pundits are already saying this will be as good as it gets, but then again, most were predicting a recession last year that never came.”
The economy has proven surprisingly resilient even as the experts predicted the Federal Reserve’s aggressive interest rate hike campaign would send it spiraling into a recession. However, there are signs it is finally beginning to slow in the face of tighter monetary policy.
Job growth is moderating. The housing market, which is vulnerable to higher interest rates, is trapped in a prolonged downturn, and consumer spending has shown signs of cooling off.
THE INFLATION FIGHT FACES A ‘DIFFICULT’ LAST MILE
Many economists expect to see further cooling in coming months as higher interest rates continue to work their way through the economy.
This is a developing story. Please check back for updates.
