Economist Believe the Economic Recovery Will Maintain Its Momentum
November 12, 2020
Despite uncertainty regarding a new Presidential administration and a surge of coronavirus cases, economists remain confident about the economy’s overall health, according to the Wall Street Journal’s most recent economist survey.
The survey’s respondents, 65 business and academic economists, were more optimistic about several metrics than they were the month previous. They anticipate the unemployment rate falling to 6.7% by year’s end, compared to the 7.8% they forecast last month. Their expectations about the year’s total GDP contraction also improved, with them now predicting a 2.7% contraction versus the 3.6% they had previously expected.
Their expectations for how much stimulus was required also fell. More than half, 58%, said the stimulus package would need to be between $1 trillion and $2 trillion, with an additional 29% saying that less than $1 trillion would suffice. The majority, 61%, expect another round of stimulus to be passed in the first quarter of next year, with just 38% believing a bill will be passed before year’s end.