Last week, the government reported real GDP in the US grew at a 6.5% annual rate in the second quarter and was up 6.4% at an annual rate in the first half of 2021. Real GDP is now 0.8% larger than it was at its peak just prior to COVID.
The problem is that getting back to where we were just prior to COVID is a low hurdle to clear. Real GDP would have grown much faster if COVID hadn’t happened. In other words, the economy is smaller today than it would have been in the absence of COVID, which is to say the economy is healing but still has a long way to go before it’s fully healed.