WASHINGTON — After several bad months of economic reports showing high inflation, President Joe Biden received some welcome economic news at the White House Thursday.
According to the Bureau of Economic Analysis, the economy grew at a faster-than-expected rate of 6.9% to close out 2021.
Those numbers represent the fourth quarter of 2021, which encompasses the holiday shopping season. For comparison, the third quarter of last year only saw growth of around 2.3%.
The country's Gross Domestic Product (GDP) grew 5.7% in 2021, marking the first time since the mid-1980s that the U.S. GDP has grown that much in a single year.
WHAT DOES THAT MEAN?
White House officials said Thursday's report is proof that the U.S. is recovering well from the COVID-19 recession.
"This GDP growth was spectacular, and what it really reflects is the recovery from the pandemic," said Dr. Cecilia Rouse, the chairwoman of Biden's economic advisers. "We are seeing economic activity pick up."
Of course, a looming issue is the inflation rate, which continues to be at a 40-year high. So, when will the positive economic numbers translate into improved prices at the grocery store?
"Most outside forecasters are expecting that inflation will be about half that it is today by this time next year," Rouse said. "We expect to see over the course of the coming months that price increases will start to moderate, and we will some relief."