US View: Economic recovery will stall over the winter but reboot in 2021
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Economy Watch | United States

Monthly updates on the state of the economy in the United States

US View: Economic recovery will stall over the winter but reboot in 2021


December 11, 2020 | Report

As new cases of COVID-19 rise in the US, the rebound seen in many economic indicators has started to wane. However, the large deceleration in consumer spending growth in Q4 2020 and Q1 2021 will eventually give way to a much stronger Q3 2021 as consumer confidence and demand are bolstered by further government stimulus, a stronger labor market, and the wide availability of a vaccine. Our base case US forecast scenario yields a 2.8 percent (annualized) expansion in GDP growth in Q4 2020. This results in an annual contraction of 3.6 percent in 2020. While GDP growth of about 3.6 percent is expected in 2021, the US economy will not return to its prerecession output level until Q4 2021. 

 


AUTHOR

ErikLundh

Senior Economist, Global
The Conference Board


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