Gross domestic product in the fourth quarter annualized 4.1% higher than in the third
The US economy grew somewhat faster in the autumn than previously known. The gross domestic product (GDP) in the fourth quarter was annualized 4.1 percent higher than in the previous quarter, as the US Department of Commerce announced after a second estimate. An initial estimate had shown an increase of 4.0 percent. Since the figures are extrapolated to the year, the correction is minor.
In the third quarter, the economy grew dramatically at an annualized rate of 33.4 percent. This was a reaction to the historic slump in the second quarter and a consequence of the corona restrictions being relaxed again. As the restrictions were tightened again in the autumn, the economic recovery was also slowed somewhat.
In the USA, GDP growth rates are always given annualized, that is, the data for one quarter are hypothetically projected for the whole year. However, this approach is misleading in the case of large swings. In Europe, this annualization is dispensed with, which is why the quarterly data from the two major economic areas cannot be directly compared with one another.
