US economic outlook - medical and political developments strengthen growth outlook

We revise up our 2021 growth forecasts as we expect the positive outlook for public health and fiscal policy to outweigh the impact of current COVID-19 cases.

Key takeaways

  • We revise up our growth forecasts from 3.5% to 4.5% and from 2.3% to 2.8% for 2021 and 2022 respectively.
  • Recent medical and political developments are a tailwind for growth in 2021; additional stimulus is likely if needed.  
  • We believe that the new Powell-Yellen-Democratic Party political reality will help growth prospects beyond the pandemic.

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Economic Outlook US economic outlook: medical and political developments strengthen growth outlook

SEE ALSO FORMER ECONOMIC OUTLOOKS