The third and last count of quarterly economic activity, which grew 6.7% at an annual rate, slightly higher than the previous estimate of 6.6%, reflects the positive impact of reopening businesses, holidays and government stimulus programs.
Again, the official report underlined that last quarter “government payments in the form of loans and money to state and local officials increased, while social benefits to families, such as direct transfers, decreased”.
The value of economic activity in the US, the world’s largest economy, is already well above pandemic levels. However, the latest projections from the US central bank the Federal Reserve (Fed) point to a slowdown in the pace of economic expansion as fiscal stimulus plans gradually ease and global supply chain problems persist into the second half of the year. .
A week ago, the Fed slightly lowered its year-end 2021 growth forecast to 5.9%, as opposed to 7% three months ago, but remains strong after contracting 3.4% in 2020.
Henry Lawson is a contributor at Sproutwired.com, covering a wide range of topics including news, politics, business, technology, sport, entertainment and lifestyle. He focuses on delivering clear, accurate and reader-friendly reporting that helps audiences stay informed about current affairs and important developments. With an emphasis on useful information and balanced coverage, Henry aims to highlight stories that matter most to readers, providing context and insight in a straightforward and accessible way.
