Report: Real GDP Growth in the First Quarter of 2024
According to the “advance” estimate, real gross domestic product (GDP) increased at an annual rate of 1.6 percent in the first quarter of 2024. This growth rate represents a deceleration compared to the 3.4 percent increase in the fourth quarter of 2023. The increase in the first quarter was primarily driven by consumer spending and housing investment, although it was partially offset by a decrease in inventory investment. Imports, which are subtracted in the calculation of GDP, also increased.
Contributions to GDP Growth
- The increase in consumer spending was driven by an increase in services, particularly in healthcare, financial services, and insurance. However, there was a decrease in goods, with motor vehicles and parts, as well as gasoline and other energy goods, being the main contributors to the decline.
- Housing investment saw an increase, primarily due to brokers’ commissions, other ownership transfer costs, and new single-family housing construction.
- Inventory investment decreased, mainly driven by decreases in wholesale trade and manufacturing.
Compared to the fourth quarter, the deceleration in real GDP growth in the first quarter was primarily attributed to decelerations in consumer spending, exports, and state and local government spending. There was also a downturn in federal government spending. However, housing investment experienced an acceleration, and imports accelerated as well.
Prices
Gross domestic purchases prices, which reflect the prices of goods and services purchased by U.S. residents, increased by 3.1 percent in the first quarter, compared to a 1.9 percent increase in the fourth quarter. Excluding food and energy, prices increased by 3.2 percent, following a 2.1 percent increase.
Personal consumption expenditures (PCE) prices increased by 3.4 percent in the first quarter, compared to a 1.8 percent increase in the fourth quarter. Excluding food and energy, the PCE “core” price index increased by 3.7 percent, following a 2.0 percent increase.
Personal Income and Saving
Real disposable personal income (DPI), which is personal income adjusted for taxes and inflation, increased by 1.1 percent in the first quarter, after a 2.0 percent increase in the fourth quarter.
Current-dollar DPI increased by 4.5 percent in the first quarter, following a 3.8 percent increase in the fourth quarter. The increase in the first quarter was primarily driven by increases in compensation and government social benefits, although it was partially offset by an increase in personal current taxes, which are subtracted in the calculation of DPI.
Personal saving as a percentage of DPI was 3.6 percent in the first quarter, compared to 4.0 percent in the fourth quarter.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | 8.1: Sustain per capita economic growth | Real gross domestic product (GDP) growth rate |
| SDG 8: Decent Work and Economic Growth | 8.2: Achieve higher levels of economic productivity | Contributions to percent change in real GDP |
| SDG 8: Decent Work and Economic Growth | 8.3: Promote development-oriented policies | Contributions to percent change in real GDP by sector (consumer spending, housing investment, inventory investment) |
| SDG 8: Decent Work and Economic Growth | 8.4: Improve resource efficiency | Contributions to percent change in real GDP by sector (goods, services) |
| SDG 8: Decent Work and Economic Growth | 8.5: Full and productive employment | Not mentioned in the article |
| SDG 8: Decent Work and Economic Growth | 8.6: Reduce the proportion of youth not in employment, education, or training | Not mentioned in the article |
| SDG 8: Decent Work and Economic Growth | 8.7: End modern slavery and human trafficking | Not mentioned in the article |
| SDG 8: Decent Work and Economic Growth | 8.8: Protect labor rights and promote safe and secure working environments | Not mentioned in the article |
| SDG 8: Decent Work and Economic Growth | 8.9: Devise and implement policies to promote sustainable tourism | Not mentioned in the article |
| SDG 8: Decent Work and Economic Growth | 8.10: Strengthen the capacity of domestic financial institutions | Not mentioned in the article |
| SDG 10: Reduced Inequalities | 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average | Not mentioned in the article |
| SDG 10: Reduced Inequalities | 10.2: Empower and promote the social, economic, and political inclusion of all | Not mentioned in the article |
| SDG 10: Reduced Inequalities | 10.3: Ensure equal opportunity and reduce inequalities of outcome | Not mentioned in the article |
| SDG 10: Reduced Inequalities | 10.4: Adopt policies, especially fiscal, wage, and social protection policies, to progressively achieve greater equality | Not mentioned in the article |
| SDG 10: Reduced Inequalities | 10.5: Improve the regulation and monitoring of global financial markets and institutions | Not mentioned in the article |
| SDG 10: Reduced Inequalities | 10.6: Ensure enhanced representation and voice for developing countries in decision-making in global international economic and financial institutions | Not mentioned in the article |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
SDG 8: Decent Work and Economic Growth
The issues highlighted in the article, such as the increase in real gross domestic product (GDP), consumer spending, housing investment, and the decrease in inventory investment, are connected to SDG 8, which focuses on promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
2. What specific targets under those SDGs can be identified based on the article’s content?
SDG 8: Decent Work and Economic Growth
Based on the article’s content, the specific targets under SDG 8 that can be identified are:
– 8.1: Sustain per capita economic growth
– 8.2: Achieve higher levels of economic productivity
– 8.3: Promote development-oriented policies
– 8.4: Improve resource efficiency
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
SDG 8: Decent Work and Economic Growth
The article mentions indicators that can be used to measure progress towards the identified targets:
– Real gross domestic product (GDP) growth rate: This indicator can measure progress towards sustaining per capita economic growth (target 8.1).
– Contributions to percent change in real GDP by sector (consumer spending, housing investment, inventory investment): These indicators can measure progress towards achieving higher levels of economic productivity (target 8.2) and promoting development-oriented policies (target 8.3).
– Contributions to percent change in real GDP by sector (goods, services): This indicator can measure progress towards improving resource efficiency (target 8.4).
4. Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | 8.1: Sustain per capita economic growth | Real gross domestic product (GDP) growth rate |
| SDG 8: Decent Work and Economic Growth | 8.2: Achieve higher levels of economic productivity | Contributions to percent change in real GDP by sector (consumer spending, housing investment, inventory investment) |
| SDG 8: Decent Work and Economic Growth | 8.3: Promote development-oriented policies | Contributions to percent change in real GDP by sector (goods, services) |
| SDG 8: Decent Work and Economic Growth | 8.4: Improve resource efficiency | Contributions to percent change in real GDP by sector (goods, services) |
Source: bea.gov
