The Congressional Budget Office projected that the American economy will return to its pre-pandemic size by the middle of the year even without federal aid.
This improvement is due to large sectors of the economy adapting better and more rapidly to the pandemic than originally expected.
The $900 billion economic aid package from the Congress in December including $600 direct checks to individuals and more generous unemployment benefits also has its part in the positive outcome.
The budget office expects unemployment rate to fall by 5.3% by the end of the year.
And the economy to grow by 3.7% for the year.
However, big economic risks remain and the economy is still below potential levels until 2025.
The office predicts that numbers of employed Americans won’t return to pre-crisis level until 2024.
But the way to a full recovery is still long and as there still are millions of unemployed people and small businesses facing a lot of difficulties.
The economic growth and employment could scientifically be boosted by COVID-19 vaccination campaign.
Other forecasts state that another aid like offered by President Biden could help economy to grow more rapidly and reach its pre-pandemic level by the end of the year.
This improvement is due to large sectors of the economy adapting better and more rapidly to the pandemic than originally expected.
The $900 billion economic aid package from the Congress in December including $600 direct checks to individuals and more generous unemployment benefits also has its part in the positive outcome.
The budget office expects unemployment rate to fall by 5.3% by the end of the year.
And the economy to grow by 3.7% for the year.
However, big economic risks remain and the economy is still below potential levels until 2025.
The office predicts that numbers of employed Americans won’t return to pre-crisis level until 2024.
But the way to a full recovery is still long and as there still are millions of unemployed people and small businesses facing a lot of difficulties.
The economic growth and employment could scientifically be boosted by COVID-19 vaccination campaign.
Other forecasts state that another aid like offered by President Biden could help economy to grow more rapidly and reach its pre-pandemic level by the end of the year.
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