New Delhi: Vaccination and federal assistance helped lift the US economy from the pandemic induced hole this spring.
The next test is whether the momentum can continue because the Coronavirus case is rising, mask, and government assistance help.
Gross domestic product (GDP), the size of the widest economic output, grew 1.6% in the second quarter of this year, the Commerce Department said on Thursday, up from 1.5% in the first three months of this year.
Based on annual, second quarter growth is 6.5%.
Growth, triggered by strong consumer spending and strong business investment, brings output, adjusted to inflation, returns to the pre-pandemic level.
It is an extraordinary achievement, exactly one year after the worst quarterly contraction on the record.
After the last recession ended in 2009, GDP took two years to rebound completely.
But the second quarter number falls short of economic estimates, and the recovery is far from complete.
The output is significantly below where it will experience continuing growth on the pre-pandemic lane.
Other economic steps remain depth depressed, especially for certain groups: the US still has almost seven million jobs less than before the pandemic.
The unemployment rate for black workers in June was 9.2%.
“The good news is this all happens much faster than after the financial crisis,” said Diane Swonk, chief economist for accounting companies gave Thornton.
“The bad news is the pain much worse.” Growth may be stronger if it is not for supply chain disorders and labor challenges that make it difficult for many businesses to keep their shelves stay filled and their shop staff.
US economy grows 1.6% in Q2, back to pre-pandemic size
