The Fort Worth Press - US economy grew 5.7% in 2021, but Omicron hit looms

USD -
AED 3.673005
AFN 68.386442
ALL 93.021933
AMD 389.349314
ANG 1.803734
AOA 913.000031
ARS 1002.721397
AUD 1.53358
AWG 1.8
AZN 1.702057
BAM 1.854577
BBD 2.020785
BDT 119.602116
BGN 1.858799
BHD 0.376916
BIF 2956.030306
BMD 1
BND 1.344124
BOB 6.930721
BRL 5.790848
BSD 1.000863
BTN 84.433613
BWP 13.672612
BYN 3.275301
BYR 19600
BZD 2.017372
CAD 1.39639
CDF 2864.999911
CHF 0.88374
CLF 0.035265
CLP 973.069559
CNY 7.241401
CNH 7.24719
COP 4396.59
CRC 508.251983
CUC 1
CUP 26.5
CVE 104.558213
CZK 24.0877
DJF 178.22092
DKK 7.087555
DOP 60.364405
DZD 133.750861
EGP 49.678296
ERN 15
ETB 124.782215
EUR 0.950275
FJD 2.269701
FKP 0.789317
GBP 0.791103
GEL 2.740301
GGP 0.789317
GHS 15.887842
GIP 0.789317
GMD 71.000247
GNF 8627.008472
GTQ 7.726299
GYD 209.391416
HKD 7.782965
HNL 25.291226
HRK 7.133259
HTG 131.472895
HUF 390.756993
IDR 15903.25
ILS 3.732285
IMP 0.789317
INR 84.493503
IQD 1311.043259
IRR 42092.505939
ISK 138.290123
JEP 0.789317
JMD 158.639851
JOD 0.709302
JPY 154.656495
KES 129.249619
KGS 86.506766
KHR 4038.536303
KMF 467.499881
KPW 899.999621
KRW 1398.125025
KWD 0.30759
KYD 0.834076
KZT 497.17423
LAK 21976.521459
LBP 89633.50686
LKR 291.187013
LRD 181.150969
LSL 18.152914
LTL 2.95274
LVL 0.60489
LYD 4.883414
MAD 9.998293
MDL 18.214834
MGA 4685.233124
MKD 58.48862
MMK 3247.960992
MNT 3397.999946
MOP 8.024142
MRU 39.785889
MUR 46.412517
MVR 15.460006
MWK 1735.461174
MXN 20.325297
MYR 4.464971
MZN 63.950307
NAD 18.152914
NGN 1680.590024
NIO 36.829479
NOK 11.03348
NPR 135.09167
NZD 1.703345
OMR 0.385001
PAB 1.000778
PEN 3.7981
PGK 4.029035
PHP 59.039501
PKR 278.226704
PLN 4.126669
PYG 7838.117183
QAR 3.649699
RON 4.729799
RSD 111.205995
RUB 101.000437
RWF 1380.157217
SAR 3.754257
SBD 8.355531
SCR 13.619994
SDG 601.497088
SEK 11.030315
SGD 1.343699
SHP 0.789317
SLE 22.575045
SLL 20969.504736
SOS 571.975839
SRD 35.43028
STD 20697.981008
SVC 8.757041
SYP 2512.529858
SZL 18.142596
THB 34.647019
TJS 10.658746
TMT 3.5
TND 3.159078
TOP 2.342102
TRY 34.465475
TTD 6.776157
TWD 32.567494
TZS 2652.359028
UAH 41.269214
UGX 3693.413492
UYU 42.784805
UZS 12854.406494
VES 46.433371
VND 25422.5
VUV 118.722009
WST 2.791591
XAF 622.001915
XAG 0.032192
XAU 0.000375
XCD 2.70255
XDR 0.761528
XOF 622.001915
XPF 113.087675
YER 249.924998
ZAR 18.116198
ZMK 9001.198706
ZMW 27.697968
ZWL 321.999592
  • RBGPF

    -0.5000

    59.69

    -0.84%

  • CMSD

    0.1910

    24.451

    +0.78%

  • NGG

    -0.7100

    62.56

    -1.13%

  • CMSC

    0.1590

    24.679

    +0.64%

  • RIO

    -0.2400

    62.15

    -0.39%

  • SCS

    0.1200

    13.19

    +0.91%

  • JRI

    0.0200

    13.25

    +0.15%

  • RELX

    0.4350

    45.545

    +0.96%

  • GSK

    -0.0400

    33.31

    -0.12%

  • RYCEF

    0.1900

    6.8

    +2.79%

  • BCE

    -0.4500

    26.55

    -1.69%

  • BCC

    2.9300

    140.34

    +2.09%

  • VOD

    -0.0680

    8.872

    -0.77%

  • BTI

    -0.1350

    36.945

    -0.37%

  • AZN

    0.6600

    63.86

    +1.03%

  • BP

    0.2950

    29.375

    +1%

US economy grew 5.7% in 2021, but Omicron hit looms
US economy grew 5.7% in 2021, but Omicron hit looms

US economy grew 5.7% in 2021, but Omicron hit looms

The world's largest economy staged a solid recovery last year as it grew at the fastest pace since 1984, but damage from the Omicron variant of Covid-19 still looms.

Text size:

Surging prices continue to pose a challenge, as inflation picked up speed in the final three months of the pandemic's second year, according to official data released Thursday.

That threatens to dampen the consumer demand that has underpinned the recovery, while supply chain snarls continue to create headaches for businesses, and for President Joe Biden's efforts to return the country to normal.

After the downturn in 2020, US GDP expanded by 5.7 percent last year, the Commerce Department said in its latest quarterly report.

Amid the rise of Omicron in the October-November period, GDP grew 6.9 percent, the data showed. While that topped expectations, economists warn the figure was inflated by businesses' attempts to rebuild depleted inventories.

"The upside surprise came largely from a surge in inventories and the details aren't as strong as the headline would suggest," said Kathy Bostjancic of Oxford Economics.

"What's more, beneath the headline GDP print, the handoff to 2022 is weak. With consumer spending retrenching in December and Omicron dampening economic activity," she said in an analysis.

Ian Shepherdson of Pantheon Macroeconomics agreed, saying the start of the year looks grim: "Our tentative Q1 GDP forecast right now is zero."

But Biden, whose signature social spending bill is stalled in Congress, cheered the report, highlighting "the fastest economic growth in nearly four decades, along with the greatest year of job growth in American history."

And, he said, "for the first time in 20 years, our economy grew faster than China's."

"This is no accident. My economic strategy is creating good jobs for Americans, rebuilding our manufacturing, and strengthening our supply chains here at home to help make our companies more competitive."

- Inflation on the rise -

Ongoing supply snarls and shortages, combined with strong demand for goods fueled by generous government aid, have created a perfect storm of inflationary pressures that have undercut Biden's approval among American voters.

Prices accelerated during the year, peaking in the October-December period with a 6.5 percent surge in the personal consumption expenditures (PCE) price index -- the measure the Federal Reserve focuses on. That was the biggest increase in 40 years.

For the full year, inflation rose 3.9 percent, according to the data, still far above the Fed's two percent goal.

Excluding volatile food and energy prices which have increased sharply in the year, the core PCE price index rose 3.3 percent in 2021, and 4.9 percent in the fourth quarter.

The Federal Reserve on Wednesday issued a clear signal that it plans to begin raising interest rates in March to tamp down inflation, but that also could restrain growth next year.

W.Matthews--TFWP