The U.S. economy has recovered from the devastating effects of the pandemic much faster than anticipated, and we expect to see that sometime in the second half of 2021 the gap between potential and actual growth closed.
Employment levels could return to their pre-pandemic levels by the end of 2022. The massive fiscal and monetary policy implemented in 2021 and the recovery in some of the United States’ major trading partners are the main factors behind the huge rebound in activity.
- Can’t Escape Demographics
- Pandemic-Driven Rebound in Productivity Won’t Last
- Growth in Potential Output Heading Lower
- Surge in Inflation Unlikely to Persist Through Long Term
- Aggregate Demand