U.S. economy to advance on Biden’s stimulus; jobs outlook remains murky
The economy of the United States was predicted to expand faster than what was initially thought, with expectations that it will also reach pre-pandemic levels within six months, a Reuters poll of economists showed. However, the job market’s recovery was viewed to take longer to recover.
The world’s largest economy will likely expand 5.7% this year, recovering from its 3.5% decline seen last year. The prediction came to be the highest forecast since polling for this period started two years ago. The positive outlook was mainly from the House of Representatives legislation of U.S. President Joe Biden’s $1.9 trillion stimulus package.
Despite an impressive drop in the country’s unemployment rate, with jobs breaching expectations in February, employment data revealed that the labor market would take several years before recovering from the coronavirus drag.