The Congressional Budget Office expects the US economy to return to pre-pandemic levels by mid-2021 thanks in large part to federal aid packages designed to stabilize and stimulate the economy, the Wall Street Journal reports.
Fourth quarter 2021 growth is projected to be 3.7% with annual GDP growth to be 2.4% for the first year of the Biden presidency. The $900 billion in aid passed in the fourth quarter of 2020 will add approximately 1.5% to the 2021 figure. A comprehensive distribution of vaccines will also lead to a steady recovery as the population re-engages in normal economic activities.
The CBO predicted an average of 2.5% growth through 2025, calculating that the burst of economic activity in 2021 will settle into a steady growth rate over the following four years as the economy returns to normalcy.