The more modest 4.0% annualised gain in fourth-quarter GDP was mainly due to some temporary weakness in consumption, which was dragged down by the resurgence in coronavirus infections. With coronavirus cases now falling and Congress agreeing on a new $900bn stimulus late last year, we expect consumption growth to accelerate again in the first half of this year. First-quarter GDP growth should be 5% and second-quarter growth could be nearer 10%, particularly if Congress agrees on more stimulus.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services