U.S. Gross domestic product grew at an annualized rate of 6.7% in the second quarter of 2021, a final estimate from the Bureau of Economic Analysis revealed Thursday morning. The slight upward revision indicates that economic growth from April to June was heading in the right direction after last year’s pandemic-induced recession.
The numbers are a flip-flop from the same period a year ago, when the economy stagnated and plunged a record 31.4%.
The first quarter of this year also saw tremendous growth, with economic growth of 6.4%, vaccines becoming more accessible and businesses starting to see consumers start to return.
Economic growth has been largely driven by a return of the retail, service and hospitality sectors, which plunged at the height of the pandemic amid consumer fears of contracting COVID-19 and government restrictions on business.
Despite growth in the second quarter, GDP estimates for the rest of the year have been revised down by the Federal Reserve and economists due to the surge in cases of the delta variant, which began this summer.
Central bank recently reduced its GDP forecast from 7% in 2021 to 5.9% and reduced its growth forecast from 3.8% to 3.3% for next year in light of the impact the new pressure is having on the economy.
Goldman Sachs also recently revised downwards its 2021 GDP forecast from 6.2% to 5.7%, and Wells Fargo has also cut some of its GDP forecast.
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