FXStreet reports that senior Economist at UOB Group Alvin Liew reviews the latest US GDP data published last week.

“The 4Q 2020 GDP increased by 4.0% q/q SAAR (slightly missing Bloomberg Est 4.2%, but much better than UOB Est 0.0%), markedly slower from the record 33.4% surge in 3Q 2020. But if we exclude the record 3Q jump, the 4% growth in 4Q will be the highest growth since 3Q 2014. For 2020 as a whole, the economy contracted by 3.5%, slightly better than market (and our) expectations but it was still the worst contraction since 1946.”

“The recovery trajectory remains highly uncertain but premised on the successful rollout of vaccinations across the US, and more fiscal stimulus in the coming months, we now project, after a temporary 1Q contraction of 2%, US GDP will rebound meaningfully in the subsequent three quarters. The US full-year 2021 GDP is now expected to expand by 4.5% (from the previous projection of 2.8% made in Dec 2020). This is slightly less optimistic compared to the IMF’s latest revised 5.1% US GDP growth (made in its Jan 2021 WEO update).”