November 22, 2022

News West

West Coast News Network

U.S. economy in first quarter grows at 6.4% annualized rate

Just a year after a new coronavirus blew a crater-size hole in the U.S. economy, the recovery gained momentum in the first quarter as growth surged at a strong 6.4% annual rate, government data released Thursday show.

Economists and government policymakers believe there’s more good news to come. The rebound is likely to grow even stronger in the months ahead, restoring millions of jobs and putting the nation on track in 2021 for the fastest growth since the 1980s.

What is expected to keep the boom going are the combined effects of massive federal spending proposed by President Biden, greater vaccination rates that will encourage millions of people to resume spending and billions of dollars in COVID-inspired savings and pent-up demand.

There are some caveats that accompany the rosy forecasts, including possible product shortages, bottlenecks and higher prices, especially in sectors such as construction and other industries struggling to meet demand for materials including lumber and semiconductors.

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