The U.S. economy is being fueled by productivity growth due to artificial intelligence and fiscal spending.

According to a report by Goldman Sachs Research, AI could increase US productivity growth by 1.5 percentage points annually, assuming widespread adoption over ten years. The report estimates a growth boost to GDP from AI of 0.4 percentage points in the US by 2034.

The US Bureau of Economic Analysis reported that real gross domestic product (GDP) increased at an annual rate of 4.9 percent in the third quarter of 2023, primarily reflecting rising consumer spending and inventory investment.

AI productivity growth and fiscal spending are the primary contributors to the growth of the US economy. However, other factors could have played a role as well.