A recent spate of positive news has allowed
Fannie Mae to upgrade several pieces of its economic forecast this month. The
approval of at least one COVID-19 vaccine, new hope for additional stimulus
approval, and stronger than expected incoming data has pushed the company’s
economists to upgrade their outlook for real gross domestic product (GDP) to
negative 2.2 percent for the full year 2020, up from a negative 2.5 percent in
their November version. The change for 2021 is more substantial, from 3.3
percent to 4.5 percent. Growth in 2022 has been raised two-tenths of a point to
3.2 percent. The economists say, “We continue to believe that the conditions
for a continued, strong recovery are present once the limiting factors of
COVID-19 on consumer behavior are lifted.”

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