Economists are cautiously optimistic that the national and state economies will begin to recover in the second half of this year. The non-partisan Congressional Budget Office expects the U.S. economy will grow at a 4.6 percent rate in 2021. Minnesota State Economist Laura Kalambokidis says the risk of the recovery is wrapped-up in getting as many people possible vaccinated for COVID 19:
“If we can get a large portion of the population immunized in the summertime then that second half of the year growth can occur.”
Kalambokidis says there is still an incredible amount of uncertainty and volatility surrounding the COVID-19 pandemic. But, she says after the second quarter of last year where the real Gross Domestic Product declined at a record rate, any growth is reason to be optimistic. A new state budget forecast will be released later this month.