There is no doubt that the U.S. economy is growing at a breakneck speed following the darkest days of the COVID-19 pandemic. According to a report by the Bureau of Economic Analysis (BEA), the economy grew by 6.4% in the first quarter of the year. The surge in growth is being attributed to the rapid reopening by many states as COVID-19 cases continue their decline in most areas.
Inside the Numbers
The 6.4% increase in the U.S. gross domestic product (GDP) is a direct contrast to the 5% decrease reported in the first quarter of 2020. The GDP is one of the most common data points to measure the health of the economy. The actual numbers were in line with the 6.5% projected growth predicted by economists.
In addition to the growth in the GDP, job growth is also seeing positive reporting. According to the Department of Labor, new jobless claims fell to their lowest levels since March 2020 last week. The economy has added a whopping 1.3 million jobs since January of this year, pointing to robust growth in the employment sector as more companies feel confident in forging ahead with hiring.
The growth is expected to continue through the entirety of 2021 as mass vaccination campaigns and various economic stimulus packages fuel the comeback.
President Joe Biden has an aggressive plan to get the economy back on track. The American Jobs Plan and American Families Plan are both designed to create millions of new jobs. While Democrats have endorsed the plans as expected, many have criticized the president for including a corporate tax hike in the proposals.