After a 3.5 percent contraction in the U.S. economy as a result of COVID during 2020, the International Monetary Fund projects that the U.S. economy will expand by 6.4 percent in 2021.  The improvement is attributed to deployment of vaccines and unprecedented and aggressive stimulus measures. 

Advanced economies including the EU, Japan, the UK, and China are driving the recovery.  China is expected to expand by 8.4 percent in 2021 up from a previous forecast of 5.1 percent.  In the U.S., the Federal government has spent $5 trillion since March 2020 and the Federal Reserve has reduced interest rates to slightly above zero in addition to purchasing securities to stabilize the economy.