WASHINGTON — The U.S. economy grew last year at the fastest pace since Ronald Reagan's presidency, bouncing back with resilience from 2020′s brief but devastating coronavirus recession.
The nation's gross domestic product — its total output of goods and services — expanded 5.7% in 2021. It was the strongest calendar-year growth since a 7.2% surge in 1984 after a previous recession.
The economy ended the year by growing at a solid 6.9% annual pace from October through December.
Squeezed by inflation and still gripped by COVID-19 caseloads, the economy is expected to keep expanding this year, though at a slower pace.
According to Reuters, Thursday's positive report supports the Federal Reserve's decision yesterday to raise key interest rates, a move intended to curb high rates of inflation.
Despite the last year's growth, some areas of the supply chain threaten to bring the economy to a standstill. Earlier this week, the Commerce Department reported that an ongoing computer chip shortage could cause some factories to close should supply dip further.