According to the World Bank, the global economy reportedly contracted 4.3% in 2020 – a 0.9% smaller contraction than anticipated earlier in the year and projected as late as mid-2020. As the crisis continues to abate, policy makers are urged by the World Bank “to balance the risks from large and growing debt loads with those from slowing the economy through premature fiscal tightening.”
The U.S. economy continues to recover from the GDP losses incurred during the COVID-19 shutdowns. Economists view a complete (sustained) recovery as unlikely until the pandemic is behind us, although the national roll-out of three promising vaccines and new treatment options, combined with pent-up demand, have restored hope of at least a partial rebound in 2021 (barring the unlikely impact of politically motivated or economically devastating headwinds).