According to the latest report from the Commerce Department, the United States economy grew by about 6.4% during the first quarter (the first three months) of the year. These latest numbers come from the third and final report the Commerce Department will do on Q1 numbers. As economists survey these final numbers and percentages, many have already come out and expressed high hopes for Q2.
Economists already believe that 2021 may be the strongest year for the United States economy in almost seven decades. If these numbers hold and continue to grow as many believe they will, then the economy could grow more than it has in one year since 1951. A forecast for GDP growth for the entire year has now been changed to a growth of about 7.5%. A growth this big hasn’t happened since 1951.
In 1984, the U.S. economy experienced a 7.2% growth. Many economists have been angling for that percentage, stating that we could see a growth as big as the one experienced in 1984. However, thanks to these Q1 percentages, now economists are hopeful that the economy could experience a growth not seen since 1951.
According to the Commerce Department, the economy in the United States grew about 4.3% in the first quarter when compared to the fourth quarter of last year. There are many reasons for this economic growth. Many Americans around the nation are becoming fully vaccinated, which has allowed many to spend money on clothes, restaurants, and travel, in ways that they possibly haven’t since the COVID-19 pandemic started.
The surge in spending activity has grown because many haven’t necessarily had the chance to do so in a great amount for the last year. The $3 trillion in financial support given to many Americans by the government since December of last year has also helped allow many to spend more money in various ways this year.
Many Americans are also spending money and splurging on items and services that they may have felt deprived of during the pandemic. For example, many are now able to gather with friends and family at restaurants. To prepare for this reintroduction into society and looking forward to going out again, people have begun to spend more on clothing and fashion items, haircuts, and spas.
As a whole, the United States has managed to allow its economy to grow, and the overall economy has definitely surged ahead and reopened across the nation in extraordinary ways. While there are still major struggles to be found — raw material and labor shortages are great examples — the economy doesn’t seem to be slowing down anytime soon.
Many economists have high hopes for the whole summer of 2021 and the rest of the year. Factories have done much better as the year has progressed. Weekly jobless claims have continued to go down each week for the most part, even though this past week did see a slight increase in claims. Overall, many have high hopes that the economy’s issues will soon naturally sort themselves out.