The United States economy will face the risk of further contraction in the coming months, but will take a breath toward a giant recovery in the spring. This is claimed by the analyst who won the Marketwatch portal’s award for the most accurate economic forecast of 2020.
That oracle is chief economist of the Paris-based consultancy Market Securities, Christophe Barraud. According to him, the United States must prepare for the economic downturn that is likely to come in the first months of this year as a result of reintroducing stricter restrictions due to coronavirus pandemic. And it doesn’t necessarily apply just to the US, it’s to Europe as well.
“Economic activity in the US is now under pressure,” Barraud said. But it may already be the other way around in the spring because it could be impressed by the strong fiscal momentum that was introduced under Donald Trump and the growing share of anti-coronavirus vaccinated people. With the arrival of spring, it will also begin to warm, and it will be possible to resume activities that can be performed outdoors. Particularly construction.
“Uncertainty will end and the U.S. economy could rebound far faster than market consensus,” Barraud added. According to him, US gross domestic product could rise 4 percent for the whole of this year.