Mary Barra’s Positive Economic Forecast for 2021
Though this year has brought its fair share of economic challenges, the auto industry has experienced some key successes as it anticipates a healthier, more consistent market in 2021. GM’s CEO Mary Barra is just one of the industry leads who is forecasting that the economy will recover sooner than expected.
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Barra’s 2021 economic prediction
According to The Detroit Free Press contributor Tom Krisher, Barra recently stated that the American economy “will be back to 90 percent of pre-pandemic levels early next year.” She also indicated that the economic recession will be “short-lived” and that the new COVID-19 outbreaks won’t impact on next year’s economic vitality.
At first glance, Barra’s prediction seems to be a bit unrealistic. However, given that the auto industry has already shown a gradual increase in sales since this spring, maybe this year will conclude with higher vehicle sales than what some experts are forecasting. After all, April had a seasonally adjusted annual sales rate of 8.6 million. This number increased to 12.2 million in May and 13.1 million in June.
Uncertainty leaves room for the possibility of a quicker economic recovery
Jonathan Smoke, chief economist for Cox Automotive, confirms the economic uncertainty for the auto industry this year. “[2020] is one of those years when forecasts have to constantly change. And by no means is the crystal ball clear, especially for the next three to six months.” This uncertainty allows for the possibility that the auto industry will finish out 2020 stronger than expected.
Two current trends that might help feed the auto industry’s economic recovery in the months ahead are the increase in summer road trips and the surge in people returning to the workplace. AAA predicts that Americans will take 683 million road trips this season. And a recent IBM study indicated that more people plan on using personal vehicles instead of public transit in the wake of the pandemic.
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Whitney Russell resides in Dayton, though her spirit can be found beach-bumming in Puerto Rico (the land of her half-Puerto Rican heritage). When not crafting car-related content, she can be found chasing after the most amazing toddler in the world, watching her “beaver” of a husband build amazing woodworking projects, hanging out with two crazy dogs, and visiting family and friends. She also enjoys traveling, crafting, and binge-watching period dramas when time allows. See more articles by Whitney.