US optimism for post Covid boom

23 February 2021 (Last Updated February 23rd, 2021 08:48)

23 February

Claudia Sahm, an economist, shared an article on the prospects of the US economy set to not just recover but to boom after the pandemic, as the virus loosens its grip and signs of economic activities picking pace in the country.

Experts have predicted a supercharged US rebound post Covid, which is most likely to bring down unemployment, and also drive up wages leading to years of stronger growth.

Already there are hints of the economy having turned a corner, such as the rise in retail sales last month as government aid showed up in consumer spending.

In addition, analysis revealed that new unemployment claims have declined since early January, although they still continue to be high as a result of the pandemic-induced job losses.

Business investments have also picked pace, indicating signs of building confidence among corporate leaders.

Goldman Sachs economists have forecasted the US economy to grow 6.8% in 2021 and the unemployment rate to fall to 4.1% by December.

The growing optimism is on account of several factors such as falling coronavirus infections, increase in vaccine rollouts, and federal compensation.

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