Economy to Grow 6.7% in 2021

The U.S. economy is expected to grow 6.7% in 2021 which is an upgrade of last month’s forecast of 5.3%, according to the February 2021 commentary from the Fannie Mae Economic and Strategic Research (Fannie Mae)

The ongoing COVID-19 vaccination effort has coincided with a swift decline in cases and hospitalizations in recent weeks, along with some loosening of state-level distancing measures. Combined with an updated assumption of a roughly $1.7 trillion stimulus package being passed by mid-March, we upgraded our full-year forecast for real gross domestic product (GDP) growth in 2021 to 6.7 percent from 5.3 percent, on a Q4/Q4 basis. If realized, this would be the fastest annual growth rate since 1983. Some of this more robust growth, however, comes via bringing forward the expected timing of the recovery.