Washington, Mar 25 (AP) The U.S. economy grew at an annual rate of 4.3 per cent in the final three months of 2020, slightly faster than previously estimated, as recovery expectations for 2021 rise along with vaccinations as the U.S. unleashes nearly USD 2 trillion in government support.

GDP in the October-December quarter rose from an estimate last month of an 4.1 per cent rate. The upward revision reflected stronger inventory restocking by businesses.

For the whole year, the GDP shrank by 3.5 per cent, the largest annual decline since a plunge of 11.6 per cent in 1946 when the U.S. demobilised after World War II. The 3.5 per cent drop was unchanged from the previous report.

Economists are looking for a huge rebound this year, helped by government support packages including a USD 1.9 trillion package signed by President Joe Biden on March 11 that is delivering USD 1,400 payments to individuals, extending emergency unemployment until early September and providing billions of dollars in relief to state and local governments.

Economists believe all the government relief measures will boost GDP in the current January-March quarter to 5 per cent or higher.

They are forecasting growth for the entire year of around 6%, which would the strongest performance since 1984 when the economy was coming out of a deep recession during the Reagan administration.

“The economy is poised for robust growth,” said Mark Zandi, chief economist at Moody's Analytics. He pointed to what he called a “potpourri of help including substantial stimulus checks, more unemployment insurance, rental, childcare and food assistance and aid to small businesses, airlines, schools and state and local governments.” (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)