US economic growth accelerated in the first quarter to 6.4%


Economic growth accelerated in the United States during the first quarter of the year, driven by massive government aid to households and businesses, paving the way for performance that is expected to be the strongest this year in nearly four decades.
The Ministry of Commerce said in its preliminary estimate of the GDP for the first three months of the year yesterday that it increased at an annual rate of 6.4 percent during the last quarter of the year, and this pace is the second fastest rate of GDP growth since the third quarter of 2003, tracking a rate of 4.3 percent In the fourth quarter of last year.
Analysts polled by “Reuters” had expected an increase in GDP growth of 6.1 percent in the period from January to March.
The US economy is recovering faster than its global competitors, thanks to two additional rounds of aid money linked to Covid-19 from Washington and also reduced concern about the pandemic, which supported domestic demand and allowed service activities such as restaurants and bars to reopen their doors.
A separate report from the Ministry of Labor yesterday showed that 553,000 filed for government unemployment benefits during the week ending April 24, compared to 566,000 in the previous period.
Although the jobless claims submitted for the first time have fallen from the record level of 6.149 million recorded in early April 2020, they are still well above the range between 200,000 and 250,000, which is consistent with a strong labor market.


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