Reports Show Improved Growth Forecasts for U.S. Economy

The United States economy is expected to achieve a better than previously expected growth this year, as shown by the most recent forecasts.

Containing the coronavirus pandemic with the rollout of vaccines, reopening business, demand recovery helped by the massive stimulus and support measures are providing the base for recovery from the pandemic.

Moreover, the American Jobs and Families Plans with massive spending on infrastructure and social aspects are also contributing to the improved outlook.

The International Monetary Fund (IMF) has raised its projection for the U.S. growth rate in 2021 to 7%, up from 4.6% in April.

Mostly in line with expectations by the U.S. Federal Reserve, this would be the fastest pace of growth in the U.S. since 1984.

Likewise, the IMF now expects the American economy will grow by 4.9% next year, compared with a previous estimate of 3.5% back in April, seeing a cumulative gross domestic product (GDP) growth of 5.25% between 2022 and 2024.

The Congressional Budget Office (CBO) has also revised its growth forecasts upwards to 7.4% for 2021, followed by 3.1% in 2022 and 1.1% in 2023.