United States economic outlook: 2023 year-in-review and early 2024 developments

United States gross domestic product rose by 2.5% in 2023. The above-potential growth was driven by resilient consumers, supported by a strong labour market and receding inflation. In 2023, 3 million new jobs were added on an annual basis, and the unemployment rate was 3.7% at the end of December. Inflation was reduced by half relative to 2022, declining from an annual rate of 8% in 2022 to 4.1% in 2023.

Cognizant of the strength of the U.S. economy, the Federal Reserve is nevertheless adopting a “wait and see” approach rather than declaring an immediate end to its monetary tightening cycle, which has had an impact on Latin American and Caribbean external financing costs. The region’s debt issuers have started to anticipate the end to global interest rate hikes —while accepting that rates may remain higher for some time yet— and are gradually returning to the international market. In 2023, the region issued US$ 89 billion in bonds in international markets, a total that was 40% higher than in 2022.

The United States economic outlook report, published by ECLAC three times a year, presents and analyses the main macroeconomic developments in the United States and examines how they could affect financial conditions in Latin America and the Caribbean.