Positive Economic Outlook — Predictions From Financial Companies
While there are several varying factors playing into the financial recovery of large companies and small businesses across the US, the bottom line remains that the economic growth set to take place is historically large. In fact, companies such as Barclays, Morgan Stanley, and Oxford are all predicting economic growth of around 6.5%. If these companies are proven right, this would be the largest economic growth in a single year since 1984.
While this would already be an incredibly successful year, other companies have predicted even higher numbers, with Goldman Sachs expecting 7% growth in 2021. Bank of America also upgraded its financial recovery estimate from 6% to 6.5%. Although many other financial institutions are not predicting a growth in business quite as high, nearly all have made updated projections to a higher than anticipated level of recovery.
Reasons Behind Historic Financial Growth Projections
One of the largest reasons behind the bullish predictions for business growth in 2021 comes from the better than expected recovery from the COVID-19 pandemic. While there are still many troubles from the pandemic, the drop in cases and hospitalizations have helped many states allow businesses to open up again at a faster rate than previously expected. This is also combined with a vaccine rollout that is nearing 2 million administered doses per day. Average daily cases have also decreased nearly 72% from the peak in January.
Another major reason for optimism comes from the possible $1.9 trillion stimulus package that is expected from the federal government. The effects of the previous stimulus checks on Americans have already been felt with a 5.3% rise in retail sales as business across nearly all retail sectors saw growth. The possibility of another stimulus check with the largest total sum thus far would have even larger benefits.
Jobs are also looking to make a comeback as businesses have begun hiring back the 22.4 million workers who were either laid off or furloughed at the onset of the pandemic. 12.4 million jobs have already been recovered, with business in many consumer sectors opening back up, with a projected 6 million more to be added over 2021. While this is still far short of the initial mark, it points to longer-term recovery.
Furthermore, the massive projected growth from financial institutions points to a faster recovery than initially expected.
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.