The Recession Is Effectively Over’: Analysts Are Expecting ‘Rip-Roaring’ Growth This Year, But Hurdles Remain

  • Date: 09-Mar-2021
  • Source: Forbes
  • Sector:Economy
  • Country:Middle East
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The Recession Is Effectively Over’: Analysts Are Expecting ‘Rip-Roaring’ Growth This Year, But Hurdles Remain

Share to Linkedin Falling coronavirus cases and hospitalizations and the prospect of another $1. 9 trillion in fiscal stimulus led Morgan Stanley equity strategist Michael Wilson to declare that "the recession is effectively over" in a research note this weekend, but risks still remain. A view of the New York Stock Exchange Building on Wall Street in Downtown Manhattan on March 05, ... [+] 2021 in New York City. Between the United States' progress in combating the public health crisis, President Biden's American Rescue Plan nearing final passage and a "spectacular" fourth quarter earnings season, "it's hard not to imagine an economy that's on fire this year," Wilson wrote. The reopening of the economy and sharp uptick in consumer spending fostered by pent-up demand and excess savings is leading analysts from Goldman Sachs to predict a major hiring boom, with the unemployment rate falling as low as 4. 1% by the end of the year. The analysts added that the generous federal unemployment benefits (the most recent stimulus bill authorized a subsidy of $300 per week) have the potential to depress the recovery in the labor market, but described the estimated effects as "small." Wilson notes that equity markets, especially