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Fannie Mae Sees 5.3% Growth for U.S. Economy
The U.S. economy is expected to grow 5.3% in 2021, a substantial improvement from the currently projected 2.7% contraction in 2020, according to Fannie Mae’s Economic and Strategic Research Group. A strong pick-up in growth is projected to commence over the spring months.
The latest forecast of full-year 2021 real GDP growth is an upgrade of 0.8 percentage points from the previous month’s forecast. This reflects the ESR Group’s view that the expansion of COVID-19 vaccination efforts and the approach of warmer weather will likely reverse the economic weakness experienced at the end of 2020.
The ESR Group also noted that the continued recovery will likely be considerably faster than the recovery following the Great Recession, and upgraded its 2022 growth forecast by 0.4 percentage points to 3.6%. Immediate risks to the forecast center around the path of the pandemic and progress on vaccination distribution.
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- ◦Economy
