Consumer spending rose 4.2%, with strong demand for goods and services|Billy Wilson|CC BY-NC 2.0

America’s gross domestic product (GDP), which indicates the value of goods and services produced, grew 2.5% last year, with 2.3% growth in the previous quarter (Q4), according to the Commerce Department yesterday.

Analysts point out the growth was lower than 3.2% in 2023 but still strong.

Consumer spending rose 4.2%, with strong demand for goods and services.

Meanwhile, the European Central Bank (ECB) cut interest rates by 0.25% to 2.75% on Thursday, aiming to revive the eurozone economy after Q4 stagnation.

France’s GDP shrank 0.1%, Germany’s fell 0.2%, and Italy recorded zero growth.

The block faces inflation, political instability and potential Trump tariffs in 2025.