Prospects for the US economy in 2021
Significance Ensuing restrictions cast doubt on the prospects for sustaining the impressive third-quarter GDP rebound in the next two quarters. The recovery of employment and consumption could be reversed. Congress's failure thus far to extend economic support beyond 2020 is a looming threat. Impacts Extended remote working will have long-term effect, fuelling real estate activity as many workers seek larger homes from which to work. Travel related firms will struggle as the Center for Disease Control advises no travel to at least end-2020; most US travel is domestic. Intra- and intercontinental supply chains will remain under stress due to full lockdowns in parts of North America and Europe. A fragile, uneven initial recovery may promote discussion of new broad-based taxes among federal and state decision-makers.