GDP Rises to 6.5% in Q2 2021
Washington, D.C., July 29, 2021-For the second quarter of 2021, real gross domestic product (GDP) climbed marginally to 6.5% from a revised 6.4% in Q1. According to the Wall Street Journal, “Second-quarter growth fell short of economists’ forecasts. Economists surveyed by The Wall Street Journal (WSJ) estimated that gross domestic product, the broadest measure of goods and services made in the U.S., grew at an 8.4% annual rate in the April-to-June period.”
WSJ further notes, “Still, the growth propelled GDP beyond pre-pandemic levels, a milestone that underscores the speed of the recovery that began last summer. Widespread business reopenings, vaccinations and a big infusion of government pandemic aid this spring helped propel rapid gains in consumer spending, the economy’s main driver.”
“‘The economy has come roaring back faster than people expected,’ said Jay Bryson, chief economist at Wells Fargo Corporate and Investment Bank.
“Economists expect growth to remain strong, fueled by job gains, pent-up savings and continued fiscal support. Still, many say growth likely peaked in the second quarter and will cool as the initial boost from reopenings and fiscal stimulus fades.
“Rising inflation, continued supply-chain disruptions and a shortage of available workers are additional factors that could restrain growth. The highly contagious Delta variant of Covid-19 also poses an increasing risk to the economic outlook.”