According to data from the Department of Commerce, the economy registered a recovery in the fourth quarter with growth of 4 percent in annual projection, according to the annualized indicator used in the United States. figure below the expectations of analysts who expected a growth of 4.4 percent.
Compared to the third quarter of the year, the growth between October and December was 1 percent. This data shows that the recovery is losing steam, after the historic contraction of 31.4 percent in the second quarter in annual projection, which was partially offset by a 33.4 percent rebound in the following quarter.
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This data is crucial to the new Democratic Biden administration seeking congressional approval of a $ 1.9 trillion contingency plan to revive the economy after the pandemic’s initial-approved rescue package runs out of resources. .
Joe Biden, President of the United States.
EFE / EPA / Al Drago / Archive
On Wednesday, the Federal Reserve warned that the outlook is “highly uncertain” and said the health of the economy depends on this. the evolution of the pandemic and vaccination coverage.
The crisis has left millions of people unemployed and weekly data from new claims for unemployment benefits yesterday showed that the number of layoffs remains at a high level. According to figures from the Department of Labor, at the len court last week, new applications have fallen by 67,000.
The loss of business and employment has fueled poverty in a country strongly characterized by inequality, and charities have been overwhelmed in many cities.
In the context of the pandemic, experts point out that the government’s ability to act is limited and that stabilization depends on the virus being checked. The United States is the country in the world where the most people died from Covid-19, which left 429,000 dead.
The Ministry of Commerce indicated that the fall in GDP in 2020 was the result of a contraction in personal spending, exports, non-residential private investment and a decline in spending by local and national governments.
AFP
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