Economic Forecast 2020-2021: Moderate And Then Improving Growth

Friday, December 13, 2019

The United States economy will look about the same in 2020 as it did in 2019, but will improve in 2021. International trade presents the greatest uncertainty to the economic outlook, and if that clears up, 2020 will be even better.

The demand side of the economy will be a little subpar, giving a small break to the supply side. When spending improves, the supply limitations of low labor force growth and middling productivity growth will return to play. As the demand-supply imbalance grows in 2020, inflationary signs will increase, prompting the Federal Reserve to begin slow, gradual snugging of short-term interest rates.

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