An upbeat forecast for the US economy in 2021

The past month has been a very eventful one for US Economic news

  • Stimulus: Congress approved a $1.9 trillion stimulus package as a liquidity bridge to fast track the economic expansion in 2021.
  • GDP growth: GDP is expected to grow spectacularly this year – 9.5% over the first quarter of 2021, averaging 7% for this year.
  • Interest rates: The Fed expects to keep interest rates low through 2023.
  • Inflation: But expects a higher Inflation rate at 2.4% to prevail, above its previous estimate of 1.8%. In the short term, we might see some volatility as money crosses back and forth between the stock and bond markets. Long-term growth should still prevail, as “good inflation” is positive for the markets.
  • Employment: Joblessness numbers fell to a historically low rate of 6.2% since the beginning of the pandemic. Another very encouraging sign.
  • Immunity: With 100M doses of vaccine delivered in the US, and 2M doses in arms per day, the economy looks to be on track for opening up in summer.

2020 Q4 World GDP Forecast (Visual Capitalist)

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