Report: US economy grew faster than any other G7 country last year
![America's economy is growing at a faster pace than any other G7 country in part thanks to a post-pandemic productivity boom, experts say. The IMF World Economic Outlook report estimates the US economy grew by 2.5 percent in 2023 - and is set for a similar 2.1 percent growth in 2024. Japan saw the second-largest growth after its economy swelled 1.9 percent while Canada came in third after experiencing a 1.1 percent increase in GDP.](https://i.dailymail.co.uk/1s/2024/02/01/20/80737199-13035101-America_s_economy_is_growing_at_a_faster_pace_than_any_other_G7_-a-140_1706821085354.jpg)
America's economy is growing at a faster pace than any other G7 country in part thanks to a post-pandemic productivity boom, experts say. The IMF World Economic Outlook report estimates the US economy grew by 2.5 percent in 2023 - and is set for a similar 2.1 percent growth in 2024. Japan saw the second-largest growth after its economy swelled 1.9 percent while Canada came in third after experiencing a 1.1 percent increase in GDP.
![But despite beating out the world's 'advanced economies,' America's growth was outstripped by so-called 'emerging markets' China and India - which are not part of the G7. They saw their GDP increase by 5.2 percent and 6.7 percent respectively. The IMF said the risk of a global recession had now greatly receded as it predicts the world economy will grow 3.1 percent in 2024.](https://i.dailymail.co.uk/1s/2024/02/01/20/80696705-13035101-But_despite_beating_out_the_world_s_advanced_economies_America_s-a-145_1706821085361.jpg)
But despite beating out the world's 'advanced economies,' America's growth was outstripped by so-called 'emerging markets' China and India - which are not part of the G7. They saw their GDP increase by 5.2 percent and 6.7 percent respectively. The IMF said the risk of a global recession had now greatly receded as it predicts the world economy will grow 3.1 percent in 2024.
![The findings lay bare the surprising resilience of the US in the face of red-hot inflation and soaring interest rates. Multiple Wall Street economists had predicted these pressures would push America into a recession in 2023. The IMF report noted that households had benefitted from a rise in disposable incomes thanks to a strong labor market. Many were also propped up by their accumulated savings from lockdown.](https://i.dailymail.co.uk/1s/2024/02/01/20/80688877-13035101-The_findings_lay_bare_the_surprising_resilience_of_the_US_in_the-a-143_1706821085360.jpg)
The findings lay bare the surprising resilience of the US in the face of red-hot inflation and soaring interest rates. Multiple Wall Street economists had predicted these pressures would push America into a recession in 2023. The IMF report noted that households had benefitted from a rise in disposable incomes thanks to a strong labor market. Many were also propped up by their accumulated savings from lockdown.
![What's more, researchers say that the pandemic triggered a swing in Americans shifting towards higher-productivity work. Adam Posen, president of the Peterson Institute for International Economics, told Axios : 'The enormous labor market churn of COVID in 2020-21 had the unintended benefit of moving millions of lower income workers to better jobs, more income security, and/or running their own businesses.](https://i.dailymail.co.uk/1s/2024/02/01/20/80738887-13035101-What_s_more_researchers_say_that_the_pandemic_triggered_a_swing_-a-142_1706821085359.jpg)
What's more, researchers say that the pandemic triggered a swing in Americans shifting towards higher-productivity work. Adam Posen, president of the Peterson Institute for International Economics, told Axios : 'The enormous labor market churn of COVID in 2020-21 had the unintended benefit of moving millions of lower income workers to better jobs, more income security, and/or running their own businesses.
!['We are reaping the benefits of it now in labor force participation, wage growth, and improved productivity.' Figures released today show US worker productivity grew at a faster rate than expected in the fourth quarter of last year.](https://i.dailymail.co.uk/1s/2024/02/01/20/79893307-13035101-_We_are_reaping_the_benefits_of_it_now_in_labor_force_participat-a-146_1706821085636.jpg)
'We are reaping the benefits of it now in labor force participation, wage growth, and improved productivity.' Figures released today show US worker productivity grew at a faster rate than expected in the fourth quarter of last year.
![Nonfarm productivity - which measures hourly output per worker - increased 3.2 percent compared to the same period last year, according to the Labor Department's Bureau of Labor Statistics. By comparison many other G7 countries struggled with greater economic pressures than the US.](https://i.dailymail.co.uk/1s/2024/02/01/20/80747615-13035101-Nonfarm_productivity_which_measures_hourly_output_per_worker_inc-a-144_1706821085361.jpg)
Nonfarm productivity - which measures hourly output per worker - increased 3.2 percent compared to the same period last year, according to the Labor Department's Bureau of Labor Statistics. By comparison many other G7 countries struggled with greater economic pressures than the US.
![For example, major European economies have seen their energy costs soar in the last two years thanks to sanctions imposed on Russian oil and natural gas . Meanwhile Japan is struggling with a shrinking population and low immigration rates.](https://i.dailymail.co.uk/1s/2024/02/01/20/80699483-13035101-For_example_major_European_economies_have_seen_their_energy_cost-a-141_1706821085357.jpg)
For example, major European economies have seen their energy costs soar in the last two years thanks to sanctions imposed on Russian oil and natural gas . Meanwhile Japan is struggling with a shrinking population and low immigration rates.
![It comes after interest rates reached a 22-year-high in 2023 as the Federal Reserve sought to dampen red-hot inflation . In their predictions for 2023, economists at Barclays Capital Inc. said it would go down as one of the worst ever for the global economy while Fidelity Investments labelled a US recession 'likely.'](https://i.dailymail.co.uk/1s/2024/02/01/20/80685839-13035101-It_comes_after_interest_rates_reached_a_22_year_high_in_2023_as_-a-137_1706821081007.jpg)
It comes after interest rates reached a 22-year-high in 2023 as the Federal Reserve sought to dampen red-hot inflation . In their predictions for 2023, economists at Barclays Capital Inc. said it would go down as one of the worst ever for the global economy while Fidelity Investments labelled a US recession 'likely.'
![But rampant consumer spending and a strong labor market has consistently surprised officials. Yesterday Fed Chair Jerome Powell alluded to this as he confirmed officials had voted to hold interest rates steady at their current level of between 5.25 and 5.5 percent .](https://i.dailymail.co.uk/1s/2024/02/01/20/80700839-13035101-But_rampant_consumer_spending_and_a_strong_labor_market_has_cons-a-138_1706821081008.jpg)
But rampant consumer spending and a strong labor market has consistently surprised officials. Yesterday Fed Chair Jerome Powell alluded to this as he confirmed officials had voted to hold interest rates steady at their current level of between 5.25 and 5.5 percent .
![Powell told reporters that economic data from the last six months had been 'promising.' However, he cautioned: 'Inflation is still too high and the path to bringing it down is not assured.' Read the full story: https://www.dailymail.co.uk/yourmoney/banking/article-13033569/america-wins-world-economic-race.html?ito=msngallery](https://i.dailymail.co.uk/1s/2024/02/01/20/80700249-13035101-Powell_told_reporters_that_economic_data_from_the_last_six_month-a-139_1706821081008.jpg)
Powell told reporters that economic data from the last six months had been 'promising.' However, he cautioned: 'Inflation is still too high and the path to bringing it down is not assured.' Read the full story: https://www.dailymail.co.uk/yourmoney/banking/article-13033569/america-wins-world-economic-race.html?ito=msngallery
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