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The slow pace of vaccinations harms the economy

Corporate leaders do not seem optimistic about the economic recovery, while they are afraid that the slow pace of vaccinations could reverse the progress. However, they seemed very confident in the spring. The National Association for Business Economics (NABE) did a new survey that found a significant reverse in economic growth. The survey showed that respondents anticipated real growth in GDP for this year at 5.7 percent, which is a considerable drop from the 6.8 percent growth awaited in May.

Chief investment strategist at CFRA Research, Sam Stovall, said that the changes of forecasts mirrored what economists have been saying. He also said that they brought down their Q3 GDP forecast from 7.1 to 5.7 percent. He added that they feel that things have changed.

In the NABE survey, approximately 2 in 5 respondents said that receding economic risk exceeds the risk for the year, while only 17 percent said conditions are improving. At the beginning of May, the researchers revealed numbers when 57 percent ranked increasing risk as a higher chance, and just 16 percent said they saw more major downside risk. The critical factor that decreases hopes for recovery is the surge of the contagious delta variant of the Covid.

The president of Cirrus Wealth Management, Joseph Heider, said they all believed that they went through the pandemic several months ago, but the new variant surprised many people. As the situation remains critical, executives are asking with concern if we ever control this process. The executive director of the NFIB Research Center, NABE survey chair Holly Wade, said in the survey forecast report that the vaccines might be ineffective to new variants of the coronavirus. Nearly two-thirds of surveyed people classified the most significant downside risk for the economy, while 8 percent indicated the slow vaccination process as the most problematic obstacle.

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COVID-19 PandemicEconomic News

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