RSM Economist: “Welcome to Boomtown”

There appears to be a “light at the end of the tunnel” for the U.S. and Quad Cities economies as they continue to navigate away from the challenges created by the COVID-19 pandemic, a top RSM economist told Quad Cities business leaders last week. 

In the Quad Cities Chamber’s Midyear Economic Forecast, presented by IMEG Corp. and Mediacom Business, RSM Chief Economist Kevin Depew said the U.S. economy is poised for some of its best growth in decades. Touting themes of resilience, reopening and reimagining, these are some of the predictions that Depew offered during the virtual forecast: 

• The U.S. economy will see its best growth since the 1980s as personal income surges, aided by the federal government’s stimulus package and excessive savings. 
• The economy is expected to generate 7.5 million jobs this year. 
• Modernization of the nation’s aging infrastructure will drive growth with $2.25 trillion proposed in infrastructure improvements. 
• The economy not only will recover, but will expand, thanks to $4 trillion in excess savings today vs. pre-pandemic levels. 
• Technology, telework and automation will continue to transform how companies do business in the post-pandemic. 
• But a fourth wave of the pandemic as well as social tensions and political violence could be major risks to the outlook. 
• Vaccine distribution will be the key to unlocking impaired economic activity.
• Some industries, including food and beverage, leisure and hospitality, and transportation will see a slow recovery. While technology, life sciences, housing and auto manufacturing will lead the recovery. 

The economy will continue to face challenges in the areas of supply chain, labor shortages as well as matching and preparing employees with the job positions available in the market today and in the future.

Depew told business leaders that the projected level of growth in GDP show the U.S. economy will grow 10.7% in the second quarter and by 7.5% for the full year. 

Watch this video to get a quick recap from Ryan Weber, RSM Quad Cities Market Leader.