CBO Sees a Stronger U.S. Recovery After Stimulus Moves in 2020

The Congressional Budget Office said it sees the U.S. economy recovering from the coronavirus pandemic much faster than previously expected -- an upgrade that potentially complicates prospects for President Joe Biden’s $1.9 trillion relief plan.

The CBO, a nonpartisan arm of the legislature, forecasts gross domestic product will increase 1.7% annually from 2020-2024, according to its economic outlook released Monday. That’s a 0.7 percentage point increase from the previous expectation released in July, months before Covid-19 vaccines were shown to be effective and approved for use, which put the pandemic’s potential end more clearly in sight.