US economy outlook: BofA boosted 2021 US GDP forecast for 3 reasons

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'Flood gates are about to open': Bank of America just boosted its forecast for 2021 US GDP growth for these 3 reasons

The US economy will experience"stellar" growth in 2021 as the COVID-19 pandemic subsides, Bank of America said in a note on Monday.

Here are the three reasons guiding Bank of America's decision to increase its economic growth forecast, according to the note.Congressional Democrats are pushing for a $1.9 trillion stimulus package that is scheduled to be voted on next month. But there is still work to be done on the bill, and some provisions proposed in the legislation will hit road blocks, BofA said.

"Vaccinations are running at a faster-than-expected-rate, which should pull forward the timeline for successful reopening of the economy. This will help to unleash demand for leisure and other COVID-sensitive services even earlier than previously anticipated," BofA said.Consumers quickly put their stimulus checks to work in December, with exceptionally robust retail sales data leading BofA to boost its first quarter GDP tracking estimate to 5.5%.

 

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