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Fiscal stimulus bolsters US economic growth in Q1, fastest GDP growth since 2003

Fiscal stimulus bolsters US economic growth in Q1, fastest GDP growth since 2003
The second-fastest gross domestic product growth since the third quarter of 2003, reported by the Commerce Department on Thursday, left output just 0.9% shy of its level at the end of 2019
Reuters | April 30, 2021 | Updated 12:19 IST
US economic growth accelerated in the first quarter as the government gave money to mostly lower-income households, fueling consumer spending and setting the course for what is expected to be the strongest performance this year in nearly four decades.
The government largesse also extended to businesses, especially in the high-contact services industry. The massive fiscal stimulus and easing anxiety over COVID-19, with all adult Americans now eligible for vaccination against the virus, have resulted in a faster economic rebound in the United States compared to its global rivals. ....

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US government money seen powering economy in first quarter | Money

Thursday, 29 Apr 2021 12:54 PM MYT
Though the anticipated pick-up in gross domestic product last quarter would leave output just below its level at the end of 2019, the economy remains at least a couple of years away from fully recovering from the pandemic recession, which started in February 2020. Reuters pic
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WASHINGTON, April 29 US economic growth likely accelerated in the first quarter, fuelled by massive government aid to households and businesses, charting the course for what is expected to be the strongest performance this year in nearly four decades. ....

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Fed lifts economic outlook as stimulus and vaccinations fuel recovery

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Caroline Brehman/CQ-Roll Call/Getty Images
The Fed boosted its estimates for economic growth in its projections since December.
US GDP is forecasted to grow 6.5% this year, up from the prior estimate of 4.2%.
The Fed also sees the unemployment rate sinking to 4.5% by the end of 2021.
Federal Reserve
policymakers boosted their projections for the US economic recovery on Wednesday as new stimulus and vaccine rollouts pave the way for a summer reopening.
The Federal Open Market Committee s median estimate for 2021 gross domestic product growth rose to 6.5% this year, and 3.3% for 2022. That compares to the previous forecasts of 4.2% and 3.2%, respectively. The unemployment rate is now expected to dip to 4.5% this year, an improvement from the prior forecast of 5%. ....

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US economy to grow 8% in 2021, infrastructure boost to follow: Goldman

Mandel Ngan/AFP/Getty Images
Goldman Sachs lifted its 2021 US growth forecast to 8% from 7.7%, citing new stimulus for the boost.
The bank also expects Biden and Democrats to pass at least $2 trillion in infrastructure spending.
That sum could hit $4 trillion if the deal includes education, child-care, and health-care spending.
Goldman Sachs joined its Wall Street peers in revising its US economic outlook on Saturday, pegging an increasingly bullish forecast to Democrats latest stimulus package.
The team led by Jan Hatzius now expects US gross domestic product to grow 8% in 2021 on a fourth-quarter-to-fourth-quarter basis, according to a note published Saturday. That s up from the previous estimate of 7.7%. The bank s full-year growth estimate climbed to 7% from 6.9%. ....

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DC Edit | Biden shows the way

DC Edit | Biden shows the way
DECCAN CHRONICLE.
Updated Mar 13, 2021, 4:53 am IST
Biden signed a historic US $1.9 trillion Covid-19 relief package heralding a path-breaking measure that sets very high standards
Mr Biden can do even more to help the world rid itself of the pandemic. (Photo: AFP)
US President Joe Biden signed a historic US $1.9 trillion Covid-19 relief package heralding a path-breaking measure that sets very high standards for the world while showing it the way out of the pain of the pandemic as well as the economic recession that came in its wake. There is something for everyone in the plan, from vaccination eligibility for every American by May and the promise of normal family gatherings by July 4 and the reopening of schools. Considering how his predecessor Donald Trump had mishandled the Covid-19 crisis into making America the worst sufferer, Mr Biden has not just tread a truly effective path; he has chosen the best possible response ....

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