U.S. | Economy Poised for Stronger Growth after 4Q20 Slowdown

Summary

Economic activity continued to expand in the fourth quarter of 2020, albeit at a much slower pace. This reflected both solid ongoing momentum and the negative consequences of lower fiscal support and rising Covid-19 cases.

Key points

• Key points:
• PCE increased 2.5% in 4Q20, but contracted in November and December
• Strong support from private investment partially offset by net exports and government
• Uncertainty around the economic outlook has increased significantly
• GDP growth in 2021 could reach its highest rate in almost 40 years

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