Joe Biden’s Economy Is Blowing the Doors off of Donald Trump’s
President Joe Biden’s leadership is blowing Donald Trump out of the water, the International Monetary Fund said in a report that it released on Tuesday, demonstrating that the American economy really does perform better when a Democrat is living in the White House.
The annual World Economic Outlook Update predicts that economic output in the United States could grow by as much as 4.2 percent between 2021 and 2022 and 3.2 percent from 2022 to 2023.
That is almost a complete 180-degree flip from the 4.9 percent downturn the US experienced in 2020 because of Trump’s failure to contain the economically devastating COVID-19 pandemic.
Per the report:
The baseline assumes broad vaccine availability in advanced economies and some emerging market economies in summer 2021 and across most countries by the second half of 2022— an accelerated timeline relative to expectations at the time of the previous forecast. Vaccine rollout speed is assumed to vary across economies based on country-specific factors. Moreover, therapies are expected to gradually become more effective and more accessible worldwide over the course of 2021–22. The baseline also assumes the possibility of lockdowns, including to contain transmission of new variants, before vaccines become widely available.
With growing vaccine availability, improved therapies, testing, and tracing, local transmission of the virus is expected to be brought to low levels everywhere by the end of 2022. Some regions and countries will get to low local transmission sooner than others depending on country-specific circumstances.
The sizable fiscal support announced for 2021 in some countries, including most recently in the United States and Japan, together with the unlocking of Next Generation EU funds, will help lift economic activity among advanced economies with favorable spillovers to trading partners. However, as noted in the January 2021 Fiscal Monitor Update, fiscal deficits in most countries are projected to decline in 2021 as revenues rise and expenditures decline automatically with the recovery.