Coronavirus pandemic poses bigger risk to the US economic recovery – Reuters poll

Dhwani Mehta FXStreet

According to the latest Reuters poll of economists, the US economic recovery is faltering, as the coronavirus pandemic poses a bigger risk than the prolonged and disputed presidential election outcome.

Key findings

“Asked if their forecasts were based on the recent progress of a COVID-19 vaccine, 57 economists who responded to a separate question were almost evenly split, suggesting the tonic for Wall Street sentiment is not yet seen as a full public health and an economic turning point.”

“Gross domestic product (GDP) was forecast to grow an annualized 3.7% this quarter and 3.0% in Q1, a downgrade from 4.0% and 3.7%, respectively, predicted last month.”

“This year, the world’s largest economy was forecast to shrink 3.6%, according to the poll of 102 economists. In 2021 and 2022 the consensus was for growth of 3.8% and 2.9%, respectively.”

US dollar may drop 20% in 2021 – Citigroup

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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