.png)
US GDP could grow by 7% in 2021, its fastest pace since the early 1980s, notably thanks to "solid budget support and vaccinations".
Rushed into its first recession following the repercussions of the COVID-19 pandemic, the economy is expected to rebound vigorously in 2021. Constrained in 2020 by restrictions aimed at containing the spread of the coronavirus, household consumption (more than two-thirds of GDP) will be the main driver of the recovery, thanks to the rapid deployment of the COVID-19 vaccine.
Households will benefit from the excess savings reserve accumulated during the pandemic (estimated at more than 1.6 trillion USD), built up thanks to tax support measures.
​
In particular, measures in the December 2020 Consolidated. Appropriations Act and March 2021 (American Rescue Plan Act) economic aid budget plans boosted consumer income and confidence. Investment should also be buoyant: low mortgage rates, low housing supply in a context of demand stimulated by new work habits will continue to encourage residential investment. Growing optimism about the recovery will boost the rebound in business investment. By the end of the year, the latter could also benefit from the possible passage of an infrastructure plan of more than 2 trillion USD by the administration of President Biden, but also, the proposed increase in corporate taxes, at the same time, to finance it could affect their confidence. The strong recovery is expected to stimulate strong import demand, which will weigh on the contribution of foreign trade to growth. Rare positive contribution to growth in 2020, public consumption should remain buoyant thanks to the aforementioned federal fiscal stimulus.
US MARKET
As more entrepreneurs and investors relocate from traditional tech hubs to emerging startup ecosystems, Miami—with its tropical climate, diverse population and lack of state income tax—has suddenly become a tech hot spot.
While Miami’s tech ecosystem isn’t as robust as San Francisco’s, for example, more startup founders and investors in Miami could boost the area’s tech scene, which raised close to $1 billion in venture funding last year, according to preliminary Crunchbase data.
While Miami has drawn tech investors and founders for years, the COVID-19 pandemic seemed to accelerate the rate of migration, according to Rebecca Danta, managing director of angel network Miami Angels. In the fourth quarter of 2020, the influx was like a “big wave,” she said.
Since then, Suarez has continued to promote Miami as an emerging tech hub, frequently posting messages on Twitter about new tech moves to the city. Suarez’s team did not make the mayor available for an interview in time for publication. Venture-backed companies based in the city of Miami raised $972 million across 57 deals in 2020 (final figures could eventually be higher due to reporting delays). Interestingly, while the deal count last year was the lowest in five years, the dollar volume of venture capital invested in Miami was the highest there had been for that same period.