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27 Jan 2022
U.S. Economy Saw Best Growth since 1984 with 1.7% Boost in Q4 of 2021
The Index Today
The fourth quarter of 2021 witnessed a record growth for the U.S. economy with a 1.7% increase as the annual gross domestic product gained at a 6.9% annual rate. This is a remarkable boost for the country since 1984 as it grew by 5.7% last year.
This increase in growth can be attributed to low interest rates and financial stimulus assistance in the country. However, it tapered off towards the end in December due to the arrival of the Omicron variant of COVID-19 which wreaked havoc across the globe through its rapid spread and the resulting restrictions.
The strong economic growth in 2021 has informed the Federal Reserve’s current decision to institute interest rate hikes this year with the first of them coming into effect in March. Fed Chairman Jerome Powell contended, “The economy no longer needs sustained high levels of monetary policy support.”
Although last year’s positive economic boost spells hope for U.S. President Joe Biden, it presents a limitation on government-sponsored funding.