WASHINGTON: The US economy is rebounding faster than expected from the COVID-19 recession, outperforming the most pessimistic estimates. But some areas remain largely shut down. So what will recovery look like?The International Monetary Fund estimates the GDP of the United States will expand by 5.1 per cent this year, after contracting by 3.5 per cent in 2020 as the pandemic forced lockdowns that shuttered businesses nationwide.
And the Fed has pledged to keep interest rates low until employment recovers and inflation stays above 2.0 per cent for some time.As businesses were able to reopen and adapt to new COVID-19 restrictions, the country regained about half of the 20 million jobs lost in the early weeks of the pandemic. Those jobs and hours likely will not come back until the vaccine rollout reaches a critical mass of Americans, allowing people to resume normal activities without fear so businesses and schools can fully reopen.
"The aid and stimulus are critical to bridging COVID-tainted waters, stemming employment losses ... and priming the pump for a more robust recovery once social distancing measures are lifted," economist Diane Swonk of Grant Thornton said.WHICH SECTORS ARE REBOUNDING FASTEST? And even as consumers have been forced to curtail activities, they have opened their wallets to spend freely on autos, electronics, furniture, and building and gardening supplies.
Thousands of shops and restaurants have closed permanently, and there is a risk of a wave of bankruptcies if the recovery doesn't come soon enough for some heavily indebted firms.
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