The US economy grew by 6.5 percent in the first quarter of 2021
The US economy grew by 6.5 percent in the first quarter of 2021 |
The first quarter of the year saw a 6.6% growth in the US economy. According to economists, this year could be the best for the growth of the US economy due to the increase in the purchasing power and spending of citizens.
On the other hand, the number of Americans receiving unemployment benefits has also declined, indicating that job opportunities in the country are increasing again.
The country's gross domestic product (GDP) has remained the same as the previous two estimates, the Associated Press quoted the Department of Commerce as saying. However, economists estimate that GDP growth will accelerate in the current quarter from April to July and could reach 10% or better annually. Economists also expect the country's economy to grow by up to 7% soon.
According to the AP, the US economy had seen such a boom in 1984 when the country was emerging from the worst recession. The recession was sparked by the US Federal Reserve's decision to raise interest rates in the country. The move was taken by the Federal Reserve to control rising inflation in the 1970s.
Some experts also predict that the current year's economic growth rate will reach 7.7, surpassing the 1984 growth rate. He says if that happened then it would be the best performance of the US economy since 1951.
The activity of the US economy depends on the purchasing power and spending of more than two-thirds of consumers, which is encouraging steady growth. In the first quarter of this year, the activity has increased by 0.1% to 11.4 per cent year-on-year.
The U.S. government has eased restrictions on making the corona vaccine available to the public, reopening many small businesses in the country and boosting consumer confidence. The travel industry and restaurants are two such businesses. There are those whose wheel of activity has turned again.
According to the Associated Press (AP), on the other hand, the country is also seeing a gradual decline in unemployment. The Department of Labor received 4,000 fewer applications for unemployment benefits than last week.
The number of applications this week stood at 411,000, up from 900,000 in January of the same year. The decline in applications for unemployment benefits indicates that the number of jobs and recruitment in the country is increasing.
This month, 26 US state governments are also phasing out the federal government's special unemployment allowance for its citizens in the wake of the coronary heart disease. The allowance provides ڈالر 300 per week to the unemployed and low-income earners.
The reason for doing so is the impression that people are running their expenses with government assistance at home instead of going back to work. There are many businesses in the country that complain that they have jobs but no candidates.
Remember that the federal unemployment allowance will be abolished across the country from September.
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