Most financial experts are happy 2020 is over. But before we say goodbye to 2020, we need to close the book on the economy’s performance in this memorable year. During our webinar, Dr. Ed will report on the very consequential 2020 (IV) GDP release and the available first quarter GDP forecasts for 2021.
As lenders you understand that growth in the US GDP represents your loan customer’s basic ability to repay their debt. You will be pleased to learn that the GDP report indicates that the economy grew at a + 4.0% pace during the final quarter of 2020. Yet, this growth was not enough to erase the GDP deficit caused by the COVID-19 recession. For calendar year 2020, the nation’s output slipped by – 3.5%. Dr Ed will forecast when that deficit will likely be made up, and what kind of economic and loan growth we can expect post COVID-19.
In response to the 2020 economic distress the FOMC dropped rates from the 1.50 – 1.75% range to the 0.00 – 0.25% range. Dr Ed will review the most recent FOMC decisions and discussed their impact on your business. Finally, Dr Ed will attempt to forecast the interest rate path that we will likely face in 2021.
Economic Update: A Lender’s Guide to the Economy in 2021
As we begin 2021, we are faced with the realization that COVID-19 has not retreated yet, as much as we are ready to see it in our rearview mirror. The virus continues to infect and kill people around the world and new strains are adding to the crisis. If this results in more economic lockdowns, it seems reasonable to assume that the economy will follow a path like it did after the first series of lockdowns.
As lenders you understand that growth in the US GDP represents your loan customer’s basic ability to repay their debt. While GDP for the final quarter of 2020 was +4.0%, for the calendar year 2020 the nation’s output slipped by -3.5%. Dr. Ed will forecast when that deficit will likely be made up and what kind of economic and loan growth we can expect post COVID-19.
In response to the 2020 economic distress the FOMC dropped rates from the 1.50 – 1.75% range to the 0.00 – 0.25% range. Dr. Ed will review the most recent FOMC decisions and discuss their impact on your business. Finally, Dr. Ed will attempt to forecast the interest rate path that we will likely face in 2021.