U.S. Economy Grows at 2.9% – Economists Predict Recession Ahead

The U.S. economy grew at a 2.9% annual rate in the fourth quarter of 2020, according to a report released by the Commerce Department on Friday. This was slightly lower than the 3.5% rate that was expected by economists.

The report showed that the U.S. economy is still growing despite the impact of the coronavirus pandemic. However, economists are warning that the growth rate could slow in the coming months as the pandemic continues to affect the economy.

Jobless claims have also been on the rise in recent weeks, and some economists are predicting that the unemployment rate could rise to as high as 10% in the coming months.

In addition, credit card spending has been slowing, and earnings reports from major companies have been mixed.

Despite the mixed economic data, stocks rose on Friday after the GDP report was released. Investors were encouraged by the news that the economy is still growing, albeit at a slower pace than expected.

The GDP report is just one of many economic indicators that will be watched closely in the coming months. Other indicators, such as consumer spending and housing data, will also be closely monitored as the economy continues to navigate the pandemic.