The US economy is still strong, recovery continues
There is no lie, there is statistic
The United States economy continued to recover in the last quarter of last year. According to an initial estimate by the US government, the size of the world’s largest economy increased for the second consecutive period, but growth was slightly weaker than expected.
The gross domestic product (GDP) thickness increased by 4 per cent, while economists in general expected an increase of 4.2 per cent. In the previous quarter, growth was still the strongest ever recorded, with a plus of 33.4%. The steep upswing from the summer followed the massive decline in the first months of the corona crisis. Across 2020, the US economy shrank by 2.5%.
Consumer spending, most of the economy, increased by 2.5%. That was lower than expected 3.1%. It is possible that the spreading virus has made consumers more restrained in their consumption behavior.
The US Central Bank Dome, the Federal Reserve, noted earlier this week that economic recovery in the US seems to be weakening. This would be due to the increasing number of Coronas and New lockdowns against the virus outbreak in the country. Meanwhile, the new president, Joe Biden, has announced a new $ 1.9 billion support package to boost the economy. This is in addition to the USD 900 billion package approved in December.
The US growth figures cannot be compared with economic figures from, for example, Europe. This is because the economic growth or contraction rates in the US are announced on the basis of a so-called annualized calculation. In doing so, the quarterly performance is imaginary extended over a whole year.