Despite the robust economic growth, it is unclear whether these strong GDP figures will filter through into sustained activity in 2024. Increased personal consumption is likely to be transitory and unsustainable, elevated inflation may eat into federal budgets and persistent high-profile layoffs could affect appetite for investment.

Still, there is cause for optimism. Even with mass technology sector redundancies, the US unemployment rate held firm at 3.9 percent in February 2024 as the demand for blue-collar jobs remains strong. Since peaking at 9.0 percent in June 2022, the rate of growth in consumer prices is steadily coming down after recording an increase of 3.2 percent in February 2024.

However, while inflation has stabilized, the rate at which growth is decreasing is not swift enough, or close enough to The Federal Reserve’s (Feds) 2.0 percent baseline. Interest rate cuts may not materialize until inflation settles further, despite the Federal Open Market Committees pledge of several rate cuts in 2024. Despite this intent, geopolitical tensions, such as the rising conflict in the Red Sea, could have ramifications for inflation in the US.

On the domestic front, the US presidential race is heating up and frontrunners are emerging. However, until the result and any post-election policies are determined, this is likely to result in uncertainty in fiscal spending, taxation and other policy and destabilize the economy. Despite this, the economy should remain resilient, with the International Monetary Fund projecting GDP to increase by 2.1 percent in 2024.