True: Economic forecasters have projected that the U.S. economy will exceed 6 percent growth in G.D.P.

By: Ranjini K
April 1 2021

Share Article:

On March 17, 2021, the Federal Reserve Officials' median estimate predicted that the U.S. economy would grow by 6.5 percent in 2021.On March 25, 2021, U.S. President Joe Biden said the economy is improving due to the $1.9 trillion pandemic relief package. He added that a majority of economists expect growth to exceed six percent in 2021. During a meeting held on March 16-17, 2021, Federal Reserve Board members and Federal Reserve Bank presidents presented their projections for G.D.P. growth, the unemployment rate, and inflation for each year from 2021 to 2023. The U.S. central bank predicted robust growth for 2021 and forecast that the economy would grow by 6.5 percent in 2021. The Federal Reserve officials expect the development at 3.3 percent in 2022 and 2.2 percent in 2023. Jerome Powell, the Federal Reserve Chair, said, "The recovery has progressed more quickly than generally expected." The Independent Commodity Intelligence Services(I.C.I.S.) reports a G.D.P. growth from 4.2 percent in December to 6.5 percent in 2021 and may exceed China's development which is expected to be at 6 percent. Morgan Stanley, foresees the U.S. economy to grow by 8.1 percent in 2021. The bank's economists added that the G.D.P. would return to pre-pandemic levels by the end of the first quarter. The team said that the economy and job market recovering, the accelerated vaccination rate, and substantial job growth contributed to the improvements.