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The United States could see its strongest growth in 40 years in 2021

2021-05-03T22:27:32.678Z

The United States' gross domestic product could grow by 7% in 2021, its fastest pace since the early 1980s, warned Monday.



US gross domestic product could grow by 7% in 2021, its fastest pace since the early 1980s, New York Fed Chairman John Williams warned Monday.

Read also: Economic activity and employment improve in the United States, according to the Fed

“With accommodating financial conditions, strong budget support and vaccinations, I think this year's rate of economic growth will be the fastest we've seen since the early 1980s,”

he said during the interview. 'a speech by videoconference.

Adjusted for inflation, GDP growth should, according to him, be around 7%.

The gross domestic product recorded in the first quarter an increase of 6.4% on an annualized basis, a measure which allows to project the annual growth if the pace is maintained.

However, this should accelerate in the second quarter.

No worries about inflation

In addition, while some fears persist about a too sharp rise in prices, the president of the New York branch of the Central Bank also deemed

"important not to overreact to (the) price volatility resulting from the unique circumstances of the pandemic ”

. Year-on-year inflation hit 2.3% in March, according to the PCE index, exceeding the US Central Bank's 2% target. But for John Williams, it is better to

"stay focused on the trend"

of the price curve. However, it should not continue to climb for too long as follows:

"I expect that once the price reversals (which start to rise again after the drop at the start of the pandemic, editor's note) and the short-term imbalances due to the reopening of the economy will have occurred , inflation will return to around 2% next year

, ”he stressed.

However, he recalled that the economy still has

"a long way to go before achieving a full and solid economic recovery"

.

"Let us not forget that there are approximately 8.5 million fewer jobs today than before the pandemic"

, he noted.

April employment figures will be released on Friday, and a million job creations are expected.

Source: lefigaro

All business articles on 2021-05-03

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