CBJ — In spite of a devastating and ongoing worldwide pandemic, the American economy grew last year at its fastest pace since Ronald Reagan’s presidency in the 1980s.

The gross domestic product — a measure of a country’s total output of goods and services — expanded by almost 6% last year according to the U.S. Commerce Department. The increase marked the most robust calendar-year growth since a 7.2% upswing in 1984 on the heels of a previous recession several years earlier.

However, massive inflationary figures are expected to take their toll on the economy this year, with many economists and financial experts downgrading their forecasts for the current January-March quarter, to about 4% growth.

Many U.S. businesses, especially restaurants, bars, hotels and entertainment venues, remain under intense pressure from the omicron variant, which has kept millions of people in their homes.

In an effort to combat out-of-control inflation it is widely expected that the U.S. Federal Reserve will increase interest rates several times this year.

@CanBizJournal