The United States economy saw growth of 2.4% in the final quarter of 2024, driven by increased consumer spending, according to the latest update from the government. However, concerns arise about the sustainability of this growth amidst President Donald Trump's trade conflicts, federal workforce reductions, and plans for mass deportations of undocumented immigrant workers.

The Commerce Department noted a decrease in GDP growth from 3.1% in the previous quarter to 2.4% in the last quarter of 2024. Throughout 2024, the world's largest economy expanded by 2.8%, slightly lower than the 2.9% growth in 2023. Consumer spending accelerated by 4% from 3.7% in the third quarter of 2023, but business investment declined, particularly in equipment investment, which dropped by 8.7%.

A key indicator in the GDP data reflecting the economy's foundational strength showed a 2.9% growth rate in the fourth quarter. This was a slight decrease from the previous estimates of 3.2% and the third-quarter rate of 3.4%. Excluding volatile components like exports, inventories, and government spending, this indicator encompasses consumer spending and private investment.

The government's latest report represents the final review of the fourth-quarter GDP performance. However, uncertainties linger due to the potential impact of Trump's policies, such as imposing tariffs on various imports, including a recent 25% tax on foreign automobiles, which may lead to higher inflation, disrupt investment, and impede economic growth.