U.S. Economy Grew 1.7% in 4th Quarter, Capping a Strong Year

The overall 2021 increase in the gross domestic product was the biggest in decades as the pandemic’s effects eased, though challenges continue.

Continuing to rebound from the shocks of the pandemic, the nation’s economy expanded by 1.7 percent in the final three months of 2021, the Commerce Department announced Thursday.

The figure, which was adjusted for inflation, reflects the growth in gross domestic product — the broadest measure of the goods and services produced. On an annualized basis, the increase for the quarter was 6.9 percent.

For the full year, the economic expansion was 5.7 percent, the biggest since 1984 — an impressive feat, though one that also reflects the depth of the damage inflicted by the coronavirus the year before.

The fourth quarter was, to some extent, a respite between coronavirus waves. It began as the Delta variant was easing, and the impact of Omicron began to be felt only in the final weeks. Economists expect Omicron to be a drag on the economy in January and much of February. But they say activity should normalize as the variant fades and spring approaches.