This may happen at the beginning of Biden’s presidency and as progress on the coronavirus vaccine continues.
“The United States economy is expected to grow in 2021, taking into account the increase in COVID-19 cases, the beginning of the Biden presidency and with a vaccine to fight coronavirus,” said Dr. Alejandro Díaz Bautista, international economist, as well as a research professor at the Northern Border College (Colef).
America’s GDP will grow by 3.5% in the first quarter of 2021. The Biden administration will push for continued fiscal stimulus, and a vaccine will help the United States contain the coronavirus pandemic during the next year 2021.
The updated United States gross domestic product (GDP) forecast with an outlook on short-term stimulus, COVID-19 coronavirus vaccine development, and economic reopening in 2021 is for economic growth.
The latest wave of coronavirus cases is the single most important factor affecting future economic growth and is already putting a significant drag on the United States’ GDP in the second half of 2020.
The economy will return to pre-pandemic production levels in the second quarter of the next year 2021.
The government is poised to pass another trillion dollars in fiscal stimulus to fuel economic recovery, either before President-elect Joe Biden takes office on January 20 or at the start of his presidency.
Rapid immunization of high-risk populations would follow and the general population could be vaccinated within a few months.
Pfizer announced that its experimental vaccine has a 90% effectiveness rate in preventing COVID-19 in trial patients. The news raised the main stock indices to all-time highs.
Pfizer said it will soon apply for emergency use authorization from the FDA, which would allow it to speed up the launch of its vaccine.
If a safe and effective vaccine can be had in a short time, the economy should soon return to a solid economic recovery path in 2021.