The economy last year grew at its fastest pace in decades, Commerce Department says
The nation's economy grew 5.7 percent last year, the biggest increase since 1984, NPR reports Thursday, per the Commerce Department.
That said, however, the growth "wasn't a straight line," notes Mark Zandi, chief economist at Moody's Analytics. "The economy remains tethered to the pandemic."
For example, though gross domestic product expanded at a whopping 6.9 percent annual rate in the final three months of 2021, it "recently lost momentum" explains The Wall Street Journal, "with business activity undermined by pandemic-induced shortages of supplies and workers." Still, as a whole, "2021 marked the strongest economic rebound in decades."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Business initially boomed during the vaccine rollout last spring and early summer, as protected Americans began to once again travel and dine out. That surge slowed, however, once the Delta variant arrived, notes NPR, and Omicron reared its ugly head not too long after.
"Q4 started with a bang and ended with a whimper," Zandi told NPR. "October was a fantastic month for the economy — consumer spending, investment — everything was kind of firing on all cylinders. And then by December, Omicron came on the scene quickly and did a lot of damage."
Even with its strength, last year's economic growth fell short of economists' hopes, proving COVID has still held the recovery back, note NPR and the Journal.
"There were just too many people who didn't get vaccinated," Zandi added. "It's admirable how well the economy did perform, despite the fact that vaccines didn't exactly solve the problem."
Positively, however, though consumer spending slowed in the first half of January, it did not fall, the Journal reports, suggesting Americans "aren't too spooked and should keep output growing."
To that end, even with Omicron's drag, economists believe "activity should normalize as the variant fades and spring approaches," per The New York Times.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brigid Kennedy worked at The Week from 2021 to 2023 as a staff writer, junior editor and then story editor, with an interest in U.S. politics, the economy and the music industry.
-
Cicada-geddon: the fungus that controls insects like 'zombies'
Under The Radar Expert says bugs will develop 'hypersexualisation' despite their genitals falling off
By Chas Newkey-Burden, The Week UK Published
-
'Voters know Biden and Trump all too well'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Is the Gaza war tearing US university campuses apart?
Today's Big Question Protests at Columbia University, other institutions, pit free speech against student safety
By Joel Mathis, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published