Some countries are at odds with the US, while others continue to remain allies with it. However, currently, both parties realize that the revival of the world's largest economy may become a catalyst for their economic rebound.
The largest stimulus bill in US history called the American Rescue Plan will provide significant support not only to Americans but also to the country's key trading partners. Ironically, China will benefit the most from it.
Analysts at Euler Hermes, the international insurance company, expect that the US manufacturing sector will fail to meet the sharply increased demand. This is why the country will have to spend $360 billion on boosting imports of goods and services. The US will allocate $60 billion to import goods from China and $45 billion from Mexico. As for the EU, Germany will send goods worth $22 billion, whereas the UK will import goods with a total cost of $16 billion.
The main bulk of the money will be received by manufacturers of household appliances. In this sector, an increase of $32 billion is expected. Manufacturers of computers and telecommunications equipment will get $30 billion and the automotive sector will receive $29 billion.
Experts at Euler Hermes assume that the US economy will expand by 5.3% in 2021 and by 3.8% in 2022. Such optimistic forecasts are due to the belief that US households will start spending the savings accumulated during the crisis. At the same time, this estimate looks quite modest. Goldman Sachs projects GDP to grow by 8%.
