US real gross domestic product (GDP) increased at an annual rate of 7 per cent in the fourth quarter (Q4) of 2021, according to the second estimate released by the Bureau of Economic Analysis (BEA). In the third quarter, real GDP increased by 2.3 per cent. In the advance estimate issued in January, the increase in real GDP was 6.9 per cent.
The increase in real GDP primarily reflected increases in private inventory investment, exports and non-residential fixed investment that were partly offset by decreases in both federal and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.
The increase in Q4 2021 GDP reflected the continued economic impact of the COVID-19 pandemic. In the quarter, COVID-19 cases resulted in continued restrictions and disruptions in the operations of establishments in some parts of the United States.
Government assistance payments in the form of forgivable loans to businesses, grants to state and local governments, and social benefits to households all decreased as provisions of several federal programmes expired or tapered off.
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