COVID-19 body-slammed gross domestic product growth in 2020. Strong gross domestic product (GDP) growth in 2020 was one of President Trump’s election calling cards before COVID-19 took down the country’s economy.
In June, the 2020 GDP growth forecast was 4%. The new forecast is GDP growth will decline by more than 4%. The decline in GDP growth is the first full-year decline since the Great Depression. Economic growth was a negative 2.5% during the 1930s.
U.S. stocks took a nosedive when the virus surfaced in the United States. But the market recovered. People kept their eye on their OTCMKTS stock. The top stock picks for 2021 are some of the same companies that helped keep the economy out of double-digit negative GDP growth in 2020. Those sectors are healthcare, technology, energy-related companies, and consumer products.
The 2021 GDP Growth Forecast Is 3.6%
In June 2020, economists expected GDP growth to be 4.8% by the end of 2020, but that changed when COVID-19 didn’t go away. The new GDP forecast is 3.6%, according to the National Association for Business Economics.
Unemployment numbers are not as grim as they were in June. And consumer spending seems to be holding its own as the virus changes the shopping landscape. Consumer spending accounts for 70% of U.S. GDP growth, according to government economists. But that percentage may drop in 2021. Brick and mortar retail stores are in trouble.
Internet shopping, for almost all consumer’s needs, continues to get easier and faster thanks to Internet marketing services. Online marketing services companies are hot stock picks this year.
The Global Economy Is in Recession Mode
The virus continues to force countries in Europe to go into lockdown mode—again. That means the global economy will face factory production slowdowns, supply chain breakdowns, and delivery and price issues. Plus, China is not buying the American products it promised to buy before the pandemic. China’s GDP growth may drop below 6% in 2021, according to the International Monetary Fund. That’s a first for the Chinese economy.
According to the International Monetary Fund, global GDP growth in 2021 should hit 2.5%. But the European Union and the U.K. are still in Brexit hell. If the Brexit deal goes through, Europe and the U.K.’s GDP growth figures will suffer. The U.K. will need to establish new trade relationships. And Europe will have to make up the GDP growth they lose when Brexit is official.
American Companies Will Have to Change Their Workplace Business Model In 2021
Most American companies will have to adopt an anywhere-office mentality. The number of people working from home jumped 300% over the pre-pandemic levels of work-from-homers. Companies will have to rethink what the work experience looks like and feels like for employees, so productivity does not suffer.
Companies that develop their employee experience skills by using flexible work policies that include people working off-site will perform better in 2021. Ongoing employee pulse surveys give these companies the ability to hand the upheaval caused by the pandemic. Those companies are ready to face 2021 challenges using technology and environmental initiatives, as well as common sense, according to Forbes.
The Best 2021 Stock Picks According to Wall Street Investors
Many investors felt confused when the market took those massive swings when the recession hit the United States. During the pandemic, investors want new concepts and ideas, as well as old ideas that can work with a little tweaking. Some of the top stock picks for 2021 are new ideas. And some are old ideas with a different twist. Here is a list of companies that may make 2021 an investment year to remember, in a good way.
- Tesla. Tesla is a technology company that sells electric vehicles. Elon Musk has the best battery technology on the planet. Thanks to a new factory, as well as excellent retail sales in China, investors think Tesla’s stock could take off in 2021. Tesla is also hot in Europe as well as in other countries.
- Beyond Meat. Beyond Meat sells plant-based meat products. The stock dropped before the election. But some Wall Street investors think the stock could double in 2021.
- Vroom. Vroom sells vehicles online. Vroom’s stock is in the $43 neighborhood. But investors think the stock could hit $70 in 2021.
Investors also like Amazon, Apple, Papa John’s Pizza, Starbucks, Chipotle, Virgin Galactic, Big Commerce, and Ulta Beauty.