display

Washington (AP) - Despite the Corona crisis, the US economy grew solidly in the first quarter.

In the first three months of the year, economic output increased by 6.4 percent projected over the year, according to data from the US government.

In the USA, growth figures for the quarters are always extrapolated to the year.

They are showing how the economy would develop if the rate of growth continued for a year.

This method is not used in Europe, which is why the figures cannot be directly compared with one another.

The situation on the labor market in the largest economy has also improved somewhat.

In the week leading up to April 24th, the number of initial jobless claims fell again, albeit only comparatively slightly.

display

The number of aid requests fell by 13,000 to 553,000, as the US Department of Labor announced.

It is the third decline in a row.

In the meantime, the aid requests have reached a level that is as low as it was at the beginning of the Corona crisis.

Initial jobless claims are an indicator of short-term developments on the labor market.

Because of the corona crisis, the US economy collapsed on an historic scale last year. Economic output shrank by 3.5 percent in 2020. That was the sharpest decline since 1946 after the end of World War II. In the first half of 2020, most economists had expected an even worse slump, but the economy stabilized again in the second half, not least thanks to extensive stimulus packages.

Most forecasts anticipate overall economic growth of 6 to 7 percent for the USA this year.

According to analysts, the main reasons for the rapid economic recovery are the vaccinations and the corona stimulus package recently passed by Congress amounting to around 1.9 trillion US dollars.

That corresponds to almost ten percent of the annual economic output in the USA.

Last year, Congress had already launched packages with a volume of around $ 3 trillion.

display

After a pandemic high last year, the unemployment rate has now fallen from almost 15 percent to 6 percent.

According to Central Bank Chairman Jerome Powell, there are still 8.4 million fewer jobs than before the crisis.

Before the pandemic worsened last March, the US economy was still booming.

No country in the world was hit as hard by the pandemic in absolute terms as the USA.

So far, the authorities in the country of around 330 million people have reported more than 32 million confirmed infections and more than 574,000 deaths.

The new US President Joe Biden had given the fight against the pandemic priority when he took office in January and accelerated the vaccination campaign extremely through various steps.

display

According to the CDC health authority, around 30 percent of the entire population in the USA are now fully vaccinated: more than 37 percent of adults and more than 68 percent of older people aged 65 and over. More than half of all adults in the United States have received at least one dose of vaccine to date, and 82 percent of the elderly. The rapid progress of the vaccination campaign in the USA now gives hope for a certain return to normal economic life.

Biden has also unveiled other huge investment plans.

In addition to a large infrastructure package, his government also wants to implement a sustainable expansion of social benefits for families and education.

Both packages together would cost around $ 4 trillion over the next ten years, according to White House plans.

The approval of the Congress is still uncertain.

© dpa-infocom, dpa: 210429-99-404854 / 2

Communication on the quarterly figures