Biden stimulus plan could lift U.S. output by 5% over three years: IMF

Initial estimates of the chief economist of the International Monetary Fund reported on Tuesday U.S. President Jo Biden’s stimulus package could help U.S. economic output expand by 5% over the next three years.

A 1.25% addition to U.S. growth in 2021 is seen by the IMF as it looks into the measures included in Biden’s proposed package. It also projects a 2.5% growth in 2022 and a cumulative 5% increase over three years.

After starting his presidency on Jan. 20, Joe Biden immediately enacted a $1.9 trillion COVID-19 relief plan to boost the economy and aid struggling households, on top of the roughly $4 trillion authorized over the past year.

IMF’s chief economist noted that the estimated global economic recovery varied widely across countries, with faster recoveries likely for major economies due to their larger policy support and quicker access to vaccines.

Despite the push, financial markets expect a lower than $1.9 trillion approved pandemic fiscal package.