NEW: Economists Surveyed By WSJ Say Bill Will Boost Economic Growth To 5.95% This Year

OECD: Will Boost Economy By Nearly 4%

S&P: Will Bring U.S. GDP To Pre-Crisis Levels By 2nd Quarter 2021

Brookings: Will Boost GDP By 4% This Year

Moody’s: Will Bring Real GDP Growth As High As 8% This Year

IMF: Could Boost U.S. Economic Output By 5% Over Next Three Years

The American Rescue Plan will help boost economic growth to 5.95%, according to economists surveyed by the Wall Street Journal this week. That bump would be the U.S. economy’s fastest since 1983.

From the Wall Street Journal

  • “The nearly $1.9 trillion relief package heading for House passage Wednesday is projected to help propel the U.S. economy to its fastest annual growth in nearly four decades […]
  • “It’s unprecedented,” Oxford Economics chief U.S. economist Gregory Daco said of the fiscal response to the pandemic. He expects the latest legislation to add 3 percentage points to U.S. GDP growth this year, and between 3 million and 3.5 million jobs.

Yesterday, the Organization for Economic Cooperation and Development (OECD) estimated that the American Rescue Plan will grow the U.S. economy by nearly 4% in 2021. The legislation’s economic stimulus and funding for accelerated vaccine distribution will also help lift global output by 5.6% and add more than a percentage point to global growth.

Here’s what other macroeconomic analysts are saying: 

  • S&P Global: “In our analysis, President Joe Biden’s proposed $1.9 trillion stimulus package brings U.S. GDP back to pre-crisis levels by second-quarter 2021, one quarter sooner than our $1 trillion base case.”

  • Brookings: Biden’s $1.9 trillion recovery package would “boost economic activity, as measured by the level of real gross domestic product (GDP), by about 4 percent at the end of 2021 and 2 percent at the end of 2022, relative to a projection that assumes no additional fiscal support.”

  • Moody’s Analytics: “With this additional economic support, real GDP growth would be robust at nearly 8% this year and almost 4% next, bringing the economy back almost to full employment by fall 2022.”

  • International Monetary Fund: “Preliminary estimates show U.S. President Joe Biden’s proposed $1.9 trillion economic stimulus package could boost U.S. economic output by 5% over the next three years.”