US Economic Productivity to Reach Pre-Pandemic Levels by Mid-2021, CBO Says

U.S. economic growth will recover “rapidly” and the labor market will return to full strength quicker than expected thanks to the vaccine rollout and a barrage of legislation enacted in 2020, according to a government forecast published Monday.

Gross domestic product, or GDP, is expected to return to its pre-pandemic size by mid-2021 and the labor force is forecast to rebound to its pre-pandemic level in 2022, the nonpartisan Congressional Budget Office said.

Importantly, the CBO said its rosier projections do not assume any new stimulus, including President Joe Biden’s...

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...