Economic Growth Projections Double on Vaccine, Stimulus
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That’s how much the U.S. economy will grow this year, according to new projections from the Organization for Economic Cooperation and Development Tuesday—more than double the 3.2% growth rate predicted as recently as December.
A lot has changed in a little over three months since the OECD’s last projection: namely, the extent of both the vaccines and money being levied to fight the pandemic and the related economic downturn. The government passed a second major relief bill in late December and appears set to approve another massive stimulus package this week, all while vaccines more quickly make their way into arms across the country.
The OECD’s new projection for growth in real gross domestic product (GDP) is just the latest sign of optimism among economic forecasters: Goldman Sachs this week predicted GDP would grow 6.9% in 2021 as the unemployment rate falls to 4.1% by the end of the year (from its current 6.2%.) Consumers are feeling encouraged too, with interest in spending rising to its highest level since 2014 in a new New York Federal Reserve Bank survey.
The OECD is a global policy forum that works with over 100 countries.