The US economy grew significantly in 2021.
(Photo: AP)
Washington The US economy gained significant momentum at the end of 2021 despite the omicron wave. Gross domestic product (GDP) rose by 6.9 percent on an annualized basis in the fourth quarter, the Department of Commerce announced on Thursday based on preliminary data. Experts polled by Reuters had expected growth of just 5.5 percent.
In view of rising demand, many companies replenished their stocks, which had been thinned out during the pandemic, which gave the economy a boost. In the summer, GDP grew by just 2.3 percent.
In 2021 as a whole, the US economy grew by 5.7 percent – the strongest growth since 1984. The GDP of the world’s largest economy thus rose to around 22.99 trillion US dollars.
Meanwhile, US industry received surprisingly few orders in December. Orders for durable goods such as airplanes and machinery fell 0.9 percent month-on-month, the Commerce Department also said. Experts polled by Reuters had only expected a minus of 0.5 percent.
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In November, however, the increase of 3.2 percent was stronger than originally reported. Analyst Ralfcircul from Helaba spoke of a “slightly weaker momentum” at the end of the year.
Growth in 2021 is in line with expectations
Economic growth over the past year has been roughly in line with analyst and government expectations. The Ministry of Finance had expected growth of 5.3 percent for 2021, the Federal Reserve (Fed) expected 5.5 percent in its December forecast.
However, this was preceded by the year 2020, which was characterized by the corona slump. In view of the regained economic strength, the Fed has signaled a turnaround in interest rates for March. It is reacting to the rapidly rising prices in the country. At the same time, she admitted that the emergence of the corona mutant Omicron posed a threat to the economic outlook.
According to Fed Chair Jerome Powell, the virus is likely to “certainly impact” growth in the first quarter. But the wave will probably pass quickly and its consequences for the economy could therefore subside.
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