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Consumer Spending, Private Investment Drive GDP Growth February 02, 2022 (0 comments)


Washington, DC—The U.S. economy bounced back from its pandemic-induced slump in 2021, growing at the fastest clip since 1984. According to the first preliminary estimate released by the U.S. Bureau of Economic Analysis (BEA) on January 27, real GDP increased 5.7% in 2021, more than making up for the 3.4% decrease in 2020. Chart:

Increases in personal consumption expenditure (both goods and services) and private domestic investment were the main drivers behind the upswing, as government spending stalled and imports outpaced exports, leading to a negative overall contribution from international trade. 

Personal consumption, by far the largest component of the GDP, increased by 7.9% compared to the previous year, thanks to a steep increase in spending on (durable) goods—including jewelry—and a more moderate rebound of service spending compared to 2020. The chart above, from, breaks down the 2021 GDP into its four components and shows how much each component contributed to the total growth.

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