Fiscal stimulus powers US economy in 2021 to its best performance since 1984 - BusinessWorld Online

1/28/2022 8:11:00 AM

The US economy notched its strongest growth in nearly four decades in 2021 after the government pumped trillions of dollars in COVID-19 relief, and is seen forging ahead despite headwinds from the pandemic, strained supply chains as well as inflation. READ

The US economy notched its strongest growth in nearly four decades in 2021 after the government pumped trillions of dollars in COVID-19 relief, and is seen forging ahead despite headwinds from the pandemic, strained supply chains as well as inflation. READ

WASHINGTON — The US economy notched its strongest growth in nearly four decades in 2021 after the government pumped trillions of dollars in coronavirus disease 2019 (COVID-19) relief, and is seen forging ahead despite headwinds from the pandemic, strained supply chains as well as inflation. A surge in gross domestic product (GDP) in the fourth […]

A surge in gross domestic product (GDP) in the fourth quarter as businesses replenished depleted inventories to meet strong demand for goods was the final push. Last year’s robust growth reported by the Commerce Department on Thursday supports the Federal Reserve’s pivot towards raising interest rates in March.

“The Fed will need to be ‘humble and nimble’ as it navigates underlying economic strength, worsening labor shortages, and stubbornly high inflation.”President Joseph R. Biden, Jr., quickly took credit for the stunning performance, which he said was “no accident.”

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Economy posts 7.7% growth in Q4 of 2021 - PSA | Cai OrdinarioThe Philippines economy beat expectations and managed a growth of 7.7 percent in the last quarter of the year, according to data released by the Philippine Statistics Authority (PSA). In a briefing on Thursday, National Statistician and Civil Registrar General Claire Dennis S. Mapa said this allowed the economy to…

Exports, imports post growth in 2021 - PSA | Cai OrdinarioThe country’s trade performance ended 2021 on a positive note as both exports and imports posted growth last year, the first time in at least two years, according to the Philippine Statistics Authority (PSA). PSA data showed the country’s export earnings grew 14.5 percent while imports increased 31.1 percent in…

22 industries offered higher pay for workers in 2021 despite pandemic - job portalThese industries include education, public and social services, electronics, information technology, marketing, telecommunications, healthcare, and construction, says JobStreet Philippines Country Manager Philip Gioca.

Philippines' GDP grows 5.6% in 2021, beating revised target(1st UPDATE) With GDP growth exceeding expectations in 2021, the Philippines is optimistic that it will bounce back to pre-pandemic levels and attain upper-middle income country status in 2022

PHL economy rebounds in 2021 - BusinessWorld OnlinePreliminary data by the Philippine Statistics Authority (PSA) showed GDP accelerated by 7.7% in the October to December period, picking up from the revised 6.9% in the third quarter and a turnaround from the 8.3% drop in the fourth quarter of 2020. READ

Shares rise on within-target 2021 GDP growth - BusinessWorld OnlineThe bellwether Philippine Stock Exchange index (PSEi) went up 19.91 points or 0.27% to end at 7,273.52 on Thursday, while the broader all shares index advanced 5.38 points or 0.14% to close at 3,861.49. READ:

Linkedin UNSPLASH WASHINGTON — The US economy notched its strongest growth in nearly four decades in 2021 after the government pumped trillions of dollars in coronavirus disease 2019 (COVID-19) relief, and is seen forging ahead despite headwinds from the pandemic, strained supply chains as well as inflation.0 The Philippines economy beat expectations and managed a growth of 7.0 The country’s trade performance ended 2021 on a positive note as both exports and imports posted growth last year, the first time in at least two years, according to the Philippine Statistics Authority (PSA).endIndex: Metro Manila (CNN Philippines, January 27) — Twenty-two industries reported an average increase of 23% in salaries they offered their workers in 2021, according to a job portal.

A surge in gross domestic product (GDP) in the fourth quarter as businesses replenished depleted inventories to meet strong demand for goods was the final push. Last year’s robust growth reported by the Commerce Department on Thursday supports the Federal Reserve’s pivot towards raising interest rates in March. In a briefing on Thursday, National Statistician and Civil Registrar General Claire Dennis S. Fed Chair Jerome Powell told reporters on Wednesday after a two-day policy meeting that “the economy no longer needs sustained high levels of monetary policy support,” and that “it will soon be appropriate to raise” rates.1 percent in 2021. “While Omicron will lead to weaker growth in the first quarter, activity is expected to rebound nicely once the latest pandemic wave abates and supply-chain glitches ease,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto.6 percent, which also overshot the government’s target of 5 to 5. “The Fed will need to be ‘humble and nimble’ as it navigates underlying economic strength, worsening labor shortages, and stubbornly high inflation. He added that 900,000 jobs were generated last year - most of which were in the second half.

” The economy grew 5. PSA data showed the 7.4 percent in 2018.7% in 2021, the strongest since 1984, as the government provided nearly $6 trillion in pandemic relief. It contracted 3. This means this is the highest fourth-quarter GDP growth since 2012 when October to December growth reached 7.4% in 2020, the biggest drop in 74 years.3 percent. It was the first time in 20 years that the US economy grew faster than the Chinese economy. “The door to our economic recovery is now fully open.

President Joseph R. Biden, Jr. Chua said in his opening statement during the virtual press briefing. Meanwhile, total external trade grew 24., quickly took credit for the stunning performance, which he said was “no accident.” Mr.5 percent, 7. Biden’s popularity is falling amid a stalled domestic economic agenda after Congress failed to pass his signature $1. However, the increase in 2021 is the highest external trade growth at least in the past three years.

75 trillion Build Back Better legislation.4 percent in the fourth quarter, respectively. “We are finally building an American economy for the 21st Century, and I urge Congress to continue this momentum by passing legislation to make America more competitive, bolster our supply chains, strengthen our manufacturing and innovation, invest in our families and clean energy, and lower kitchen table costs,” Mr. Biden said in a statement.2 percent and Services posted a growth of 5.21 billion, indicating a trade deficit with an annual increase of 112. Gross domestic product increased at a 6.9% annualized rate in the fourth quarter, the government said in its advance GDP estimate. However, AFF contracted 0.

That followed a 2.9 percent, 15.3% growth pace in the third quarter. On the demand side, valuables, intellectual property products, and construction posted the highest growth at 60. Growth is 3.1% above its pre-pandemic level.9 percent, and 15 percent in the fourth quarter of 2021, respectively. The country’s top import sources for 2021 were China, Japan, and Korea accounting for 22. Economists polled by Reuters had forecast GDP growth rising at a 5.

5% rate.9 percent, 14. The momentum, however, faded by December amid an onslaught of COVID-19 infections, fueled by the Omicron variant, which contributed to undercutting spending as well as disrupting activity at factories and services businesses.9 percent of total shipments. But there are signs that infections have peaked, which could lead to increased demand for services by spring.9 percent, respectively. Inventory investment increased at a $173.5 billion rate, contributing 4.7 percentage points, 1.

90 percentage points to GDP growth, the most since the third quarter of 2020. Businesses had been drawing down inventories since the first quarter of 2021. In 2021, the same items contributed the most to GDP with Household final consumption expenditure, construction, and government final consumption expenditure contributing 3. Spending shifted during the pandemic to goods from services, a demand boom that pressured supply chains. Excluding inventories, GDP grew at a moderate 1.3 percentage points, and 1.9% rate.

Stocks on Wall Street were trading higher. Image credits:. The dollar gained versus a basket of currencies. US Treasury yields fell. BALANCING ACT Some economists viewed the modest growth in the so-called final sales as a sign that the economy was set to slow down significantly, especially if not all the inventory accumulation was planned. They also worried that rate hikes as well as reduced government aid, especially the loss of the childcare tax credit, could hurt demand.

So far inventory-to-sales ratios remain low by historical standards. “Fed policymakers will have to be extremely careful at threading the needle when they raise interest rates as every other Federal Reserve in history has raised interest rates too high and brought the economy crashing back down,” said Christopher Rupkey, chief economist at FWDBONDS in New York. Growth last quarter was also lifted by a jump in consumer spending in October before retreating considerably as Omicron raged. Consumer spending, which accounts for more than two-thirds of economic activity, grew at a 3.3% rate after rising at a 2.

0% pace in the third quarter. A decrease in purchases of motor vehicles, which are scarce because of a global chip shortage, was offset by increases in spending on healthcare as well as at membership clubs, sports centers, parks, theaters, and museums. Inflation increased at a 6.9% rate, the fastest since the second quarter of 1981, way above the Fed’s 2% target. That resulted in income at the disposal of households dropping at a 5.

8% rate, which also limited consumer spending. Still, households remained cushioned by huge savings, which were at $1.34 trillion. Wages surged at an 8.9% rate before adjustment for inflation, reflecting a labor market that is experiencing an acute shortage of workers, with 10.

6 million job openings at the end of November. Though the labor market took a step back in early January as Omicron surged, it is at or near maximum employment. A separate report from the Labor Department on Thursday showed initial claims for jobless benefits dropped 30,000 to a seasonally adjusted 260,000 during the week ended Jan. 22. There were sharp declines in claims in Illinois, Kentucky, Texas, New Jersey, New York as well as Pennsylvania.

Support to GDP growth last quarter also came from a rebound in business spending on equipment. But government spending fell at both the federal and state and local levels. Trade made no contribution after being a drag on GDP growth for five straight quarters, while investment in homebuilding contracted for a third consecutive quarter. The sector is being constrained by expensive building materials, which has resulted in a record backlog of homes yet to be built. Despite the economy’s struggles at the start of the year, most economists believe the run of good fortunes will prevail.

Growth estimates for this year top 4%. “This year may well be an even better year for the economy,” said Scott Hoyt, a senior economist at Moody’s Analytics in West Chester, Pennsylvania. “Growth will slow and monthly job gains will lag last year’s lofty rates. Nonetheless, the economy should be near full employment and inflation near the Fed’s target by year’s end.” — Lucia Mutikani/Reuters .