Roaring 2020s? CBO’s surprising predictions

The Washington Times:

The Congressional Budget Office is predicting the economy will come roaring out of the coronavirus recession with growth surging to 12.4% the rest of this year, before settling back into the longer-term trend of about half that.

HALF THAT IS 6%, also large by historical standards. Historical average is roughly 3% per year. Here’s a chart for each U.S. President starting with Hoover (SOURCE: https://www.thebalance.com/gdp-growth-by-president-highs-lows-averages-4801102)

OTHER PREDICTIONS:

Unemployment will peak at more than 14% but “fall quickly” as the economy rebounds later this year and into next year, the CBO said in its new update Thursday.

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The projections assume that most social distancing requirements will fade — though new mandates coinciding with coronavirus flareups are also incorporated. That lessening of restrictions will unleash the economy.

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“Real GDP and employment are projected to rebound quickly in response,” CBO said.

CBO analysts said low-income workers — and African Americans, Hispanics and women — have been hit particularly hard by the downturn, chiefly because they were more likely to hold jobs in the service sectors that were hardest-hit.

Read more at The Washington Times

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