US economy grows more than forecasts in Q2

The world's largest economy grew more than expected in the second quarter of 2023, thus keeping far from recession despite higher interest rates.

The US Department of Commerce data showed on Thursday that gross domestic product rose 2.4% year-on-year in the three-month period ended in June, compared to estimates of 1.8%, and growth of 2% in the first quarter.

The US consumer spending increased by 1.6%, accounting for about 68% of all economic activity during the second quarter.

The data comes a day after the Federal Reserve raised interest rates to their highest levels in 22 years, while Federal Reserve President Jerome Powell did not rule out in his statements yesterday the possibility of a further hike in September.