The U.S. economy will grow by a robust 4.6 percent this year — its fastest pace since 1999 — as the country rebounds from the coronavirus pandemic and the accompanying economic contraction, said the CBO on Monday. Recovery began in mid-2020, sooner than expected, and has also been stronger than expected.
In an economic overview, the CBO said it “currently projects a stronger economy than it did in July 2020.” The economy would grow more rapidly, the jobless rate would be lower while interest rates and inflation would be modestly higher than forecast six months ago. The $900 billion coronavirus package enacted at the end of 2020 “played a part in improving the economic outlook.”
Economic growth would benefit U.S. agriculture by boosting demand for crops and livestock at a time when federal subsidies are expected to shrink from the swollen levels of 2019 and 2020. The USDA has projected strong economic growth this year, along with larger plantings and higher market prices for the major U.S. crops, such as wheat, corn, soybeans and cotton.
The CBO report is available here.