Joe Biden says the U.S. economic outlook is positive
U.S. President Joe Biden spoke about America’s economic outlook on Thursday. According to the President, the future looks brighter thanks to the fast coronavirus vaccine rollouts and the recent passage of his $1.9 trillion relief package. Economists also forecasted that growth this year might exceed six percent.
In January, Biden declared that they were starting to see new signs of hope in the U.S. economy since they had passed the American Rescue Plan. Most analysts significantly increased their outlooks on the economic growth for this year. The reports hinted that it would likely exceed 6% growth in GDP (gross domestic product).
That number may soar even higher as COVID-19 vaccine rollouts gather pace, allowing people greater freedom of movement and activity. Besides, the stimulus bill also boosts consumer spending.
Federal Reserve officials signaled last week that they expect growth of 6.5% in 2021. If the U.S. economy grows to such an extent, it will mark the fastest expansion since the 1980s.
Some private forecasters have gone even further, stating that the economy will surge forward by 7% this year. That would be a dramatic upward swing, especially after the 3.5% contraction it endured in 2020. The pandemic caused the U.S. economy’s fastest annual downfall in more than seven decades.
The job market is recovering after suffering greatly over the last few months
Joe Biden discussed the job market as well, saying that there are signs of a recovery. For instance, the number of U.S. citizens filing first-time claims for jobless benefits dropped below 700,000 for the first time since the coronavirus pandemic caused a deep recession almost one year ago.
According to the President, on Friday, the number of people filing for weekly unemployment insurance reduced by nearly 100,000 persons. Biden noted that while there are still too many citizens out of work, and the government still has a lot of work to do, hope is on the way.
Furthermore, the President spoke about the infrastructure plan he is developing in an attempt to fill the massive holes remaining in the U.S. job market. Since February, nearly 9.5 million people have lost their jobs in the country due to the pandemic.
Biden’s economics team is working on a long-term plan in the range of $3-$4 trillion. This money will be used to upgrade aging schools, repair crumbling roads and bridges, and invest in green technologies. All of those activities will necessitate workers, helping get many of those displaced employees back into jobs.
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