CoBank Quarterly: US Economy Gathers Momentum
Apr 20 2021
The U.S. economy continues to outperform expectations as stimulus funds are fueling robust consumer spending. Consensus forecasts point to 7% GDP growth for 2021, the fastest rate of expansion since 1984. Inflation is inevitable, however, as the 2020 price declines will widen year-over-year inflation over the next two quarters, and new upward price pressure should push headline inflation above 3%.
Many in the agricultural industry are experiencing the best market conditions since 2013. Prices are hovering near multi-year highs as strong exports and dwindling supplies have solidified a healthy outlook for much of the farm economy.
The transition to a less COVID-restricted world has begun. But for the economy and rural industries, there will be no going back to pre-COVID conditions. A transformed policy environment and awakened commodity markets are making way for a whole new operating environment, according to the new Quarterly report from CoBank’s Knowledge Exchange.