Home News US Economy

US economy to grow 5% in 2021

Ng Qi Siang
Ng Qi Siang2/1/2021 11:27 AM GMT+08  • 4 min read
US economy to grow 5% in 2021
Profit margins for US firms seem to be bottoming out and could soon rise in the coming months.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Despite Covid-19 headwinds adding a touch of gloom to the global economic outlook, Fitch Solutions remains bullish about the fate of the US economy going into the coming year. Primarily driven by an uptick in private consumption, the market intelligence firm has revised its growth predictions for the US from 4.1% to 5%.

“US real GDP expanded by 4.0% q-o-q annualised in 4Q2020, according to the government's advance estimate, slightly below the Bloomberg median forecast of 4.2% annualised and bringing the full year figure to a 3.5% contraction, above our previous forecast of a 3.7% contraction,” the firm observes in a 29 January report.

Fiscal policy will be the main thrust of US economic recovery. Fitch sees government spending growing 1% y-o-y and adding 0.2 percentage points (ppt) to growth in 2021.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.