Coronavirus: testing the limits of the expansion and policy

Summary

In July 2019, the US officially achieved the largest economic expansion since records began. This growth continued in spite of the obstacles encountered as a result of the trade war with China and the global industrial recession.

Key points

• Key points:
• Despite the unusual duration of this current expansion, and the anxiety that the probable end to the cycle can create, the fundamentals of the US economy remain solid.
• Household balance sheets have greatly improved since the crisis, as families are benefitting from the positive trends in both employment and wages, coupled with low levels of inflation.
• However, much of the economic stimulus generated in early 2020 (due to the trade agreement reached with China and the signing of the USMCA) has evaporated as a result of the COVID-19 outbreak.

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