Research Brief: Gross Domestic Product 1Q 2021

Gross domestic product surges in first quarter due to stimulus. In the opening three months of 2021, GDP jumped an annualized 6.4 percent, supported by consumer spending fueled by government funds. The economy should continue to grow at a rapid pace due to the influx of capital from stimulus legislation and Fed aid to small businesses. Gains may be more broad-based in this year’s spring period as additional restrictions are lifted across the globe and  more people can participate in the retail economy again. Furthermore, tax returns and stimulus money are being distributed in the second quarter at a time when occupancy restrictions are being withdrawn in many states across the country.

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