Believe it or not, the economy grew last year at the fastest pace since 1984

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January 27th, 2022

consumer prices economy gdp 2021

Container ship Ever Far, left, sails down river past the Georgia Ports Authority’s Port of Savannah, Wednesday, Sept. 29, 2021, in Savannah, Ga. Inflation has spiked during the recovery from the pandemic recession as Americans have ramped up spending on such items as cars, furniture and appliances. Those increased purchases have clogged ports and warehouses and exacerbated supply shortages of semiconductors and other parts. (AP Photo/Stephen B. Morton)

Last year saw the fastest economic growth since Ronald Reagan was president. But for many people, 2021 felt less like “Morning in America” and more like a restless night, dogged by fitful dreams about the ongoing pandemic.

The Commerce Department reported Thursday that the nation’s gross domestic product grew 5.7% last year — the biggest increase since 1984. But the growth arrived in fits and starts, with hopes for a steady recovery repeatedly dashed by successive waves of infection.

And now, uncertainty continues in the year ahead, as the omicron variant continues to spread. Meanwhile, the Federal Reserve gears up to raise interest rates, perhaps aggressively, in an effort to combat stubbornly high inflation.

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