From the Washington Post:
The U.S. economy grew 5.7 percent in 2021, the fastest full-year clip since 1984, roaring back in the pandemic’s second year despite two new virus variants that rocked the United States.
The growth was uneven, with a burst of government spending helping propel a fast start, even as a surge in new cases and deaths in the second half of the year created new pressures. The economy grew 6.9 percent from October to December, the Bureau of Economic Analysis said Thursday, a sharp acceleration from the 2.3 percent it grew in the previous quarter.
The economic growth created a record 6.4 million jobs in 2021 — but also brought with it a host of complications, helping fuel the highest inflation in 40 years and creating supply chain snarls as consumers hungry for products overwhelmed the global delivery system. To beat back rising prices, the Federal Reserve is now shifting its strategy and preparing for multiple interest rate hikes this year, convinced it has given enough support to help the labor market and now must keep the economy from overheating even further.
For all of 2021, growth is estimated at 5.6%, which would be the strongest since 1984. The economy contracted 3.4% in 2020, the biggest drop in 74 years.
The sharp rebound in growth last year could offer some cheer for President Biden whose popularity is falling amid a stalled domestic economic agenda after the U.S. Congress failed to pass his signature $1.75 trillion Build Back Better legislation.