Economy
June 30, 2021
GDP Growth Firm at 6.4% in Q1’s Final Revision
Written by David Schollaert
U.S. GDP grew by 6.4% in the first quarter of 2021 on an annualized basis, according to the Bureau of Economic Analysis’ (BEA) third and final revision. The third revision saw no change in overall GDP compared to the advance and second estimates; however, upward revisions to nonresidential fixed investment, private inventory investment, and exports were offset by an upward revision to imports, which are a subtraction in the calculation of gross domestic product.
The economy’s progress in Q1 was the second-fastest pace of growth since Q2 2003 and was exceeded only by the rally that erupted during initial pandemic re-opening efforts in Q3 last year. This growth is an acceleration from the 4.3% real GDP increase seen in Q4 2020, setting the stage for what economists believe may be the strongest year for the economy in nearly seven decades. The recovery from last year’s deep recession gained steam at the beginning of this year, helped by mass COVID vaccination efforts and trillions of dollars in government assistance.
