“The ’20s will be roaring, but with several months of hardship first,” according to the quarterly UCLA Anderson forecast. “These next few months will be dire, with rising COVID infections, continued social distancing, and the expiration of social assistance programs.”
The forecast, which assumes mass vaccination of Americans will take place by summer, predicts that annualized growth in the nation’s gross domestic product will accelerate from a weak 1.2% in the current quarter to 1.8% in the first quarter of next year, then to a booming 6% in next year’s second quarter and consistent 3% growth each quarter thereafter into 2023.
“With a vaccine and the release of pent-up demand, the next few years will be roaring as the economy accelerates and returns to previous growth trends,” wrote Leo Feler, a senior economist with the forecast. “We expect a surge in services consumption and continued strength in housing markets to propel the economy forward.”
Get ready for another roaring '20s, UCLA economic forecast predicts https://t.co/7bwkHGuMdA
— L.A. Times Health (@latimeshealth) December 9, 2020