The 2021 Economic Outlook – A Year of Rebuilding

What can businesses expect from 2021 as we usher in a new Presidential administration and begin to emerge from the global pandemic?

There has probably never been as much collective hope as when the world rang in 2021 – and with good reason. As of Jan 2021, there are two approved COVID-19 vaccines in the US and three more in Phase 3 clinical trials. That means economies will begin opening up around the world this year, putting both global and local businesses in a better position to start rebuilding and capitalizing on opportunities the “new normal” of work and life afford them. Here at home, we’ve also just sworn in a new President. He and his administration have vowed to bring unity and calm to the country, something many Americans say they want. With all that’s happened in the last 12 months, priorities have shifted – for both companies and consumers – as we’ve all adopted a “we’re all in this together” attitude. But what will this mean for businesses as they plan for the future in our changed world?

The Economic Outlook for 2021

Even though we continue to see surges in COVID-19 worldwide, Mr. Rasco says the economic outlook is promising. “Economists expect GDP to be very strong in the first half of 2021, and numbers are already far better than forecasted.” As depleted inventories are built back up, manufacturing will continue to add to GDP and job growth in the US and around the world. The stimulus package passed in the US in December supports consumers and small- and medium-sized businesses. Mr. Rasco says that injection of capital should lead to an uptick in consumer spending. Corporate profits are also expected to increase by 25% this year, which should offset any potential tax increases introduced by the new administration. As vaccines continue to roll out, he adds, there is hope that economies will truly begin to open up globally in July and August. “2021 should be a pretty good year for the global economy, a year of rebound and rebuilding,” he says.

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