Economic constraints and scenarios
April 29, 2021
There are some important policy issues that need immediate attention but do not get the priority they deserve in policy discussions about the future direction of the economy. This is because targets relating to the current IMF programme such as the size of the fiscal deficit or the debt-to-GDP ratio top the policy agenda as does the country’s struggle with the consequences of the Covid-19 pandemic.
One way of compensating for short-term thinking is to create a ‘Futures Thinking and Foresights Unit’ of the type examined by the Asian Development Bank (ADB) in a recent report. The ‘Futures Thinking and Foresights Unit’ should induct experts in agricultural development and water resources management apart from economists and public health experts (the last because the age of the pandemic will persist for some years).
U.S. Economic Growth Accelerates In First Quarter
WASHINGTON (dpa-AFX) - Preliminary data released by the Commerce Department on Thursday showed an acceleration in the pace of U.S. economic growth in the first three months of 2021.
The report said real gross domestic product surged up by 6.4 percent in the first quarter after jumping by 4.3 percent in the fourth quarter of 2020. Economists had expected GDP to increase by 6.5 percent.
The Commerce Department said the GDP growth reflected increases in consumer spending, non-residential fixed investment, federal government spending, residential fixed investment, and state and local government spending.
Meanwhile, decreases in private inventory investment and exports helped limit the upside along with an increase in imports, which are a subtraction in the calculation of GDP.