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2021 Economic Forecast: A Fresh Start

January 7, 2021

To say that 2020 was a difficult year would be an understatement. From an economic standpoint, it was on par with the 2008 financial crisis. However, there are a couple of major differences.

In 2008, nobody died as a result of the recession. The economic collapse affected all industries. Real estate was hit particularly hard since subprime defaults and bank failures cut off the financial oxygen for the industry.

In 2020, the economic impact was uneven, with some industries (such as leisure and hospitality) devastated while others managed to remain prosperous. For the most part, real estate has avoided market collapse this time around. Any long-term effects are still emerging.

In an effort to better understand the economic strengths and weaknesses of the nation at a given time, I typically follow more than a dozen economic indexes. Here are my key takeaways for 2021 for the U.S. and San Diego.

This article was originally published by Xpera Group which is now part of The Vertex Companies, LLC.

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