With 2020 finally in the rear-view mirror, the economic outlook for 2021 is brighter, says Scotiabank’s Chief Economist Jean-François Perrault.
In the latest episode of Pandenomics – our podcast series looking at the impact of COVID-19 on the economy – Perrault breaks down how factors including a new US government regime, stimulus sitting in bank accounts waiting to be spent and strengthening business confidence point to a “strong” rebound this year.
However, the landscape will be difficult in the short run, as coronavirus cases continue to surge in Canada and internationally and major lockdowns are imposed.
“We’re kind of going back to the worst of the pandemic from last year. But it’s important for folks to understand that this is all very much temporary. There is the vaccine, and the vaccine is a major development on the virus side. … As the virus takes a back seat and we start to see it in the rear-view mirror, there is a lot of potential for quite strong growth for the remainder of the year and into 2022.”
Listen to Pandenomics Ep. 7: Markets recover as COVID cases surge here.
Listen to Pandenomics Ep. 6: Biden pros, cons for Canada here.
Listen to Pandenomics Ep. 5: COVID and real estate, Part 2 here.
Listen to Pandenomics Ep. 4: The COVID housing boom here.
Listen to Pandenomics Ep. 3: COVID-19 and business here.
Listen to Pandenomics Ep. 2: COVID-19's impact on jobs here.
Listen to Pandenomics Ep. 1: COVID-19 and Canada's economy here.