U.S. Economic News
February 2, 2021
U.S. News
The Wall Street Journal reports that the Congressional Budget Office (CBO) expects U.S. GDP to return to its pre-pandemic level by the middle of 2021, revising its summer forecast upward due to a less severe downturn than expected and a quicker recovery than expected. However, less positively, the CBO also forecasts that employment levels and potential economic output will not return to pre-pandemic levels until 2024 and 2025, respectively. WSJ
The Wall Street Journal reports that many U.S. consumers are shunning cash out of convenience and a desire to avoid virus transmission, driving a surge in contactless payments and digital retail sales. Overall, new payment habits adopted during the pandemic have accelerated a shift away from cash which could help support a quicker economic recovery, since consumers tend to spend more when using a card or digital wallet. WSJ