U.S. Rich Get Richer, Goldman Boosts Outlook, China GDP: Eco Day

Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your week started.

  • Americans have become, by some measures, richer during the pandemic than ever before
  • Goldman Sachs economists raised their growth forecasts for the U.S. this year and beyond after Biden unveiled a sweeping revival plan
    • Meantime, a top economic adviser to President-elect Joe Biden warned the U.S. economy is “spiraling downward” and called for swift action
  • The Biden’s team of financial regulators is taking shape -- moves that mean Wall Street should prepare itself for a new era of tougher oversight and stricter rules.
  • China’s economy recovered to pre-pandemic growth rates in the fourth quarter, propelling it to a stronger than expected full-year expansion of 2.3% and making it the only major one to avoid contraction
    • Still, Bloomberg Economics cautions that challenges at the start of 2021 could put a damper on China’s growth
    • The rapid economic recovery also masks the fact that the gap between rich and poor in China remains wide, holding back a stronger turnaround in consumption
  • British home prices fell in January as sellers tried to speed up transactions with discounts before a temporary reduction in a hefty tax on home-buying ends -- although many deals will miss the deadline anyway, according to Rightmove
  • Resurgent coronavirus outbreaks will vex central bankers on five continents this week as they weigh the threat of more damage to growth against a hope that mass vaccinations will reopen economies

©2021 Bloomberg L.P.

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