Deep Dive: 'Expansion will slow down'

Silvia Dall’Angelo, senior economist at the international business of Federated Hermes, dives into US equities

The US economy has outperformed so far in the recovery from the Covid-related recession. It expanded by about 5.5% in 2021, following a 3.4% contraction in 2020. US GDP went back to its pre-Covid level by Q2 21, having dropped by more than 10% peak-to-trough in the first half of 2020.  Following record fiscal and monetary stimulus, it is expected to exceed its pre-Covid trend by mid-2022, in contrast to most other economies that are set to remain scarred by the recession. In the short- to medium- term, the outlook for the US is constructive, with the economic recovery likely to contin...