On Monday, according to a report released by the Organization of Economic Cooperation and Development (OECD), the U.S. economy is predicted to grow at a rate of 6.9 percent this year. This is the highest growth rate since 1984. The causes for this unprecedented growth rate are twofold: the s money granted by the Biden administration through stimulus payments and the successful COVID-19 vaccination drive across the nation.
The OECD is a group of experts from 38 countries. Their report says that they believe that the US Gross Domestic Product (GDP) is predicted to increase to 6.9 percent by the year end. The nation has not seen such an increase since 1984.
President Biden mentioned that the predictions say that the U.S. is experiencing its “fastest growth in forty years.” He summed it up saying Covid cases were down, Covid deaths were down, unemployment was down, and hunger was down. He also said vaccinations were up, jobs were up, and growth was up and people gaining health coverage was up. He added that small business confidence was up. He said that to put it simply” America’s coming back” and that “America’s on the move.”
In simple terms, the GDP measures the Goods and Services produced in a country. Last year, it fell to an annual rate of 3.5 percent. The pandemic and its drastic effect on the economy caused the GDP to fall. The shutdowns and curbs also decreased both production and spending.
The OECD report said that the huge vaccine drive and the additional fiscal stimulus are set to improve the economy and hasten its recovery. It also says that the high vaccine rate will lead to a high confidence in the economy and will also protect US citizens from new or different strains of COVID-19.
The Biden administration’s approach in focusing on vaccine drives, giving stimulus checks and working to increase wages, has led to increased consumption as household savings will soon be spent bolstering the economy further. Although core inflation is set to rise, it is predicted that it would be under control.
The OECD has predicted an overall economic growth rate of 5.8 percent throughout the world for this year. However, it has said cautioned that the recovery would be uneven in different parts of the world.