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U.S. Economy Grows 1.6% in First Trimester

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The American economy posted growth of 1.6% in the first quarter of the year, unchanged from the first estimate made a month ago, and a sign of the economic recovery underway following the crisis caused by the Covid-19 pandemic, the Bureau of Economic Analysis (BEA) reported today.

This is the second estimate the government has made on economic activity at the start of the year following the annual contraction in Gross Domestic Product (GDP) of 3.5% recorded in 2020.

“The increase in the first quarter reflected the continued economic recovery, the reopening of businesses, and the Government’s continued pandemic-related response,” the official report noted.

Among these, it mentioned direct transfers, the extension of unemployment benefits, and aid to small and medium-sized enterprises.

The upward revision in consumer spending was offset by a decline in exports, the report added.

In terms of the annualized rate, the growth that the U.S. economy will register if this pace is maintained throughout the year, the figure would be 6.4%.

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