The U.S. economy showed unexpected resilience in the fourth quarter of 2020, with the latest GDP data from the Commerce Department revealing a 2.9% annual growth rate. This is higher than the 2.5% growth rate that economists had predicted, and comes despite fears of a recession.

The GDP report also showed that consumer spending, which accounts for two-thirds of economic activity, rose by 4.2% in the fourth quarter, the highest rate since the second quarter of 2018. This increase was driven by a surge in spending on goods, such as cars and furniture, as well as services such as travel and entertainment.

The news has been welcomed by Wall Street, with stock futures rising in response to the data. Investors are now looking ahead to see how the markets will react to the GDP data, with some predicting that the data could signal a recession is coming.

Economists are also looking at the data to gauge how the economy will fare in 2021. While the fourth quarter growth rate is encouraging, there are still concerns that the economic recovery could be hampered by the resurgence of the coronavirus and the lack of additional stimulus from the government.

For now, the U.S. economy appears to be in a better position than expected, and the latest GDP data could be a sign that the country is on the path to recovery.