Ronald Reagan was in the White House, “The Return of the Jedi” to theaters and economic growth reached a staggering 7.9%.
The United States has produced many more Star Wars movies since 1983, but growth has never reached that level, until this year, if economists are right. Respondents by The Wall Street Journal increased their average forecast for 2021 economic growth to 6.4%, measured as the change in inflation-adjusted gross domestic product in the fourth quarter from a year earlier. If you realized, it would be one of the few times in 70 years that the economy has grown so fast.
“We had an incredible shock, but look how quickly we are recovering,” said Allen Sinai, global economist and strategist at Decision Economics Inc. five years left. I think we will end up in a boom. “
Economists expect growth to slow to 3.2% next year, making 2021-22 the best performance in two years since 2005.
This boom could have a potentially worrying side effect. Inflation, as measured by the consumer price index, is expected to rise sharply from 1.7% in February, when data for March is released on Tuesday. This is partly a peculiarity of the data, as the direct falls in consumer prices recorded at the start of the pandemic in March last year fall from the 12-month calculation.