US slightly upgrades GDP estimate for 2021 2nd quarter to 6.6%

01 Sep '21

2 min read

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The US economy grew at an annual rate of 6.6 per cent in the second quarter of this year, slightly faster than the 6.5 per cent previously estimated, according to the second estimate released by the Bureau of Economic Analysis (BEA) that pointed to a sustained consumer-led rebound from the pandemic-induced recession. In the first quarter, real gross domestic product (GDP) increased by 6.3 per cent.

But concerns are rising over the delta variant’s spread and a slowdown is being anticipated. In recent weeks, , many economists have been downgrading their GDP growth estimates for this quarter, and for 2021 as a whole with delta variant cases rising throughout the United States.

Goldman Sachs has cut its forecast for annual growth in the current July-September quarter from 9 per cent to 5.5 per cent, citing the effects of the delta variant. Likewise, Wells Fargo economists have downgraded their third quarter GDP forecast from an 8.8 per cent annual rate to 6.8 per cent, also because of the surge in COVID cases.

Many have also reduced their outlook for the full year, thought by smaller amounts, in anticipation that the economy could re-accelerate in the final three months of this year if COVID cases ease as vaccines are increasingly administered.

Fibre2Fashion News Desk (DS)

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