MNI BRIEF: Biden Election Boosts Growth Expectations: Ifo

Economic growth will likely see an uptick in many countries following the election of Joe Biden, a recently released Ifo survey of international experts suggests. An increase of 1.16ppt on average to growth in 2021 is expected, according to the survey of 843 experts from 107 countries were asked. US experts on the other hand do not anticipate any change for their own country, leading to an overall effect of +0.98ppt.

"After the ongoing coronavirus crisis and its drastic effects, respondents say Biden's presidency could be a ray of hope for global economic development in the coming year," write Niklas Potrafke, Director of the ifo Center for Public Finance and Political Economy. The report further noted that between 1949 and 2021, economic growth in the US was 1.79ppt higher under Democratic presidents compared to Republican presidents.