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The United States’ economy accelerated to its fastest pace in 2021 in the last three months of the year, the Bureau of Economic Analysis reported.
The real gross domestic product (GDP) grew at an annual rate of 6.9% in the last quarter of 2021, up from 2.3% in the third quarter and 4.5% in the fourth quarter of 2020. This is the fastest since the 33.8% in the third quarter of 2020.
Growth for the quarter was primarily driven by private inventory investment, exports, personal spending, and nonresidential fixed investment. These were partly offset by declines in federal states and local government spending.
The latest figure reflects the impact of COVID-19 restrictions on the economy, as the increase in cases resulted in disruptions in operations. Government assistance also declined during the period as federal programs expired or were tapered down.
The full-year GDP increased by 5.7% in 2021, marking a recovery from the -3.4% recorded in 2020. This reflects growth in all major subcomponents led by personal consumption expenditure and nonresidential fixed investment.
Current-dollar GDP jumped 10.0% to $22.99 trillion during the year, versus the 2.2% decline in 2020.
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