The growth of the US economy may probably slow down towards the end of the present year 2020. However, there is an accelerating figure of economists who believe that it will revert to the previous strength in pre-pandemic days only in the second half of 2021. This perspective has been provided by the Business Economics of National Association.
About 73% of surveyed predictors believe that the economy might stabilize like the pre-pandemic time within the end of 2021. This is an enormous boost since only 38% of them had previously stated that the economy can start completely recovering only from 2022 and not before that.
Stabilizing US Economy
Holly Wade, chair of the survey has said that the positive outcome from the clinical trial phase of the COVID-19 vaccine has encouraged better expectations of the US economy. Pharmaceutical firms have been demanding US regulators for permission to authorize the vaccine candidates since the reports of the 3rd phase trial have been promising. It has given them hope of mass inoculation very soon.
All this indicates lesser restrictions on business and more assurance among companies and consumers to expend more.
In case the forecasts work out positively, there will be a swift recovery of the US economy after 2021. As soon as the coronavirus started spreading, the governors across the nation issued regulations to shut down, resulting in the US economy rapidly plummeting by 3.14% annualized basis from April to June. During summer, it further declined by a massive 33.1%.
However, now the growth is expected to be 2.9% annualized basis in the first few months of next year.