After the pandemic of COVID19 in the year 2020, many businesses suffered. In the downfall, the economy of the United States dwindled as well and we will only see the results of money printing in the years to come. However, as the year has passed, the United States economy has grown after the pulverization of COVID19. Here are some of the predictions for 2021.
Outlook of the experts about the United States Economy in 2021:
The experts make the following predictions and are according to their outlooks about the United States Economic in 2021. The factors consist of unemployment, Gross domestic product (GDP) Of the United States, and inflation in the states. The unemployment rate, prices of gas and oils, and the influence of climate change are taken into account.
The United States economy right now:
As the past data shows, there has been a decrease in the gross domestic product (GDP) of the United States of America. It has decreased by 5 percent in the recession of the year 2020. This data was the record of the first quarter. In the second quarter, the GDP saw a decline of 10 percent.
The growth in the economy on the United States
According to the experts who sat in the Federal Open Market Committee meeting, the economy of the United States would have a rebounding economy by the percentage of 4.2% growth rate in the year 2021.
· Effects of climate change
Researchers are now concerned and pay special attention to climate change and how it will affect the economy. Richmond Fed’s research shows that the country’s annual GDP growth rate will reduce if the country keeps producing emissions at a high rate.
Also, the US faced damages in 2020 from both wildfires and hurricanes. All these natural disasters are the result of climate change which keeps on occurring every year now.
Moreover, insurance companies will pay more for the damages, which are getting frequent each year because of global warming.
· Prices of gas & oil
The Energy Information Administration EIA of the United States provides an overview of oil and gas prices for 2020-2050. The prediction is that the crude oil per barrel will increase for the US over the years.
Moreover, cheap oil sources will have been exhausted with each New Year, making the crude oil production more and more expensive for the US market.
Although, the predictions do not take into consideration the United States Government’s efforts of increasing renewable energy production to reduce global warming. Also, the prediction doesn’t take the COVID- 19 pandemic’s impact on oil price into account.
Increase in Unemployment rate:
The studies show that the unemployment rate will increase to 6.7% and gradually fall to 5% in the following areas and eventually to 3%. In addition to that, workers have lost jobs in pandemic too.
In Conclusion
As we can acknowledge that the United States of America had to go through a lot of destruction in its economy due to the pandemic of COVID19. Let’s see if the predictions of these experts turn out to be as forecasted or not.