Varnum law firm sponsored this story.
By Leslie D. Green | Special to Crain’s Content Studio
Economists suggest the speed of recovery from pandemic-related shutdowns shows the United States is on an upswing that could continue into 2021. However, presidential transition-related conflict and a third-wave surge in global coronavirus cases have economists, investors and businesses on edge.
Credit spreads, overall financial-stress indicators and the dollar have remained relatively tame, suggesting the equity market is mainly consolidating its outsized gains while anticipating clarity on the profits outlook. Indicators, including positive corporate earnings in the third quarter, have been pointing toward stronger U.S. growth—particularly since they rebounded faster than during the last recession. And the United States has been experiencing solid momentum in economic growth so far in the fourth quarter, bringing activity within the 90 percent to 95 percent range of pre-coronavirus pandemic action.
Yet, uncertainty remains. Business leaders question how the President-elect’s plans and policies, including taxes, health care and tariffs, will affect industries and their consumers. And, as more states implement and reestablish COVID-borne restrictions, worries over country-wide shutdowns and hopes for an additional stimulus are growing.
“We have seen a fairly quick rebound. But that last 5 percent of economic growth is going to be very, very difficult to reclaim. It will be a long climb—and probably not until 2022—until we return to the levels of economic growth we had prior to the pandemic,” said Matt Elliott, Midwest Region Executive for Business Banking and Detroit Market President of Bank of America.
Elliott recently moderated a virtual roundtable conversation with metro Detroit business, academic and community leaders about the state of the region transitioning from 2020 to 2021.
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“And we close those through economics. So anytime you support minority-owned firms, you are actually helping to do that in a fashion that is much more sustainable than most.”
This piece was originally printed in Crain's Detroit Business Book of Lists 2021 and on CrainsDetroit.com.