The growth of the US economy accelerated in the first quarter

The annual growth rate of the US economy accelerated to 6.4 percent in the first quarter of 2021 from 4.3 percent in the previous three months. It slightly exceeded the estimates of analysts, who expected it to reach 6.1 percent. This was shown by preliminary data from the US Department of Commerce, according to which the US economy was supported by a massive package of government stimuli during the period under review, as well as the easing of blockades associated with Covid-19 due to advances in vaccination. The acceleration in economic growth in January-March reflects an increase in consumer and government spending, non-residential and residential fixed investment, and government and local government spending. These helped mitigate the impact of declining exports and investment in private inventory, the ministry said. But reopening and rising spending have also pushed up prices, with consumer inflation rising to 3.5 percent in January-March from 1.5 percent in the previous quarter, the ministry said. The ministry expects economic growth in the current second quarter (April-June) to be even faster, reaching as much as 10 percent or more, after the release of measures to stop the spread of the pandemic. Analysts also predict that more and more people will be willing to travel, shop, eat out and restore other "pre-pandemic" spending habits after months of blockades. Extensive vaccinations, the reopening of more businesses, huge incentives and the recovery of the labor market should help the US maintain stable growth. Analysts estimate that for the full year 2021, the US economy will grow by almost 7 percent, which would be the fastest pace since 1984.