US GDP Above Pre-Pandemic Levels In 2021

The pandemic remained a major force influencing growth in the US economy in 2021. But as vaccinations picked up and stay-at-home orders began to be lifted, the economy took considerable steps to recove throughout the year.

Despite being behind pre-pandemic levels on many major metrics, on other metrics, and notably on inflation, the US economy has handily exceeded its pre-COVID trends.

And indeed, many aspects of economic activity have shifted since the rapid spread of the coronavirus in the US in early 2020.

Extraordinary monetary and fiscal policies during the crisis provided stimulus for more than a year, helping buoy economic activity and bolster consumption.

And as demand for goods, services and venturing out roared back, all of these factors have coalesced to drive up prices at multi-decade high rates.

Concerns about the coronavirus have lingered. The discovery of the Omicron variant in late November spurred a renewed wave of restrictions globally in recent weeks.

But so far, economic growth as a whole has increased at a solid clip in 2021. US gross domestic product (GDP) grew at a real annualized rate of 6.4% in the first quarter, then 6.7% in the second and 2.1% in the third, based on the latest estimate for the quarter.

The size of the economy as measured by GDP surpassed pre-pandemic levels in the second quarter this year, following 2020’s brief but rapid plunge into recession.