Saying 2020 was a rocky year may be the ultimate understatement. But after the turmoil and uncertainty, customers, brands and investors want to know what the economy looks like in 2021.
According to Fox Business Network’s Charles Payne, there’s reason to be extremely optimistic.
In 2021, consumer savings are near record highs. That, combined with government stimulus money, means that there is a lot of money and the ability to spend it once consumer confidence levels pick up.
Part of the reason to expect economic growth in 2021 is the concept of revenge shopping or revenge travel as the pandemic starts to subside. After more than a year of shutdowns and quarantines, customers are eager to spend money, have experiences and travel. Payne predicts that customers will want to make up for lost time, which will be great for the economy.
Although there has been tremendous job loss and countless businesses closing during the pandemic, new business applications have gone through the roof in recent months. The fact that people are confident enough to start businesses is a good sign for the economy, and consumers will likely give a special effort to support small businesses, at least initially. Small businesses are poised for success, and the economy needs them to thrive. But Payne points out that these businesses don’t exist in a vacuum, and uncertainty and actions taken towards big businesses could potentially hurt smaller businesses. For new small businesses to thrive, they need continued customer support.
The growth of the economy is also tied to the growth of construction and real estate. Over the last year, we’ve seen a growing exodus from expensive cities to less expensive suburbs. Just a few years ago, consumers wanted to rent everything instead of owning, but in today’s world, customers want the control and confidence that comes from owning things, especially homeownership. To rebound after the pandemic exodus, Payne says cities will have to reinvent themselves and become experience hubs. That growth and change could foster new business growth as consumers look to make up for lost experiences.
The economy is certainly changing in 2021, but overall, things are looking up. With consumers eager to spend, small businesses on the rise and a change and reinvention for cities and suburbs, this year will have a lasting impact on the economy—for the positive.
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Blake Morgan is the bestselling author of The Customer of the Future. Sign up for her new course here.