The Commerce Department released on Thursday its advance estimate for
the U.S. gross domestic product (GDP) for the fourth quarter of 2021, which showed
the U.S. economy expanded more than forecast in the reviewed period.
According to the estimate, the U.S. real GDP grew at an annual rate of 6.9
percent q-o-q last quarter, following an unrevised 2.3 percent q-o-q expansion
in the third quarter. This marked the strongest economic growth in five
quarters.
Economists had expected GDP to increase 5.5 percent q-o-q.
According to the report, the climb in real GDP in the fourth quarter
reflected advances in private inventory investment, exports, personal
consumption expenditures (PCE), and nonresidential fixed investment, which,
however, were partly offset by declines in both federal and state and local
government spending. Meanwhile, imports, which are a subtraction in the calculation
of GDP, rose.
In 2021, the U.S. economy expanded 5.7 percent y-o-y after a 3.4 percent
y-o-y contraction in 2020.