How the economy might recover with summer kicking into gear
Jun 1, 2021

How the economy might recover with summer kicking into gear

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We'll hear from one economist who says we could see more than 10% GDP growth in the second quarter on an annualized basis, along with a recovery for the services sector this summer. Also, public skepticism for China's new three-child policy and what it will actually mean for population growth. Plus, keep an eye out for credit card incentives as companies hope to bring balances back up. And, a labor shortage for lifeguards.

Segments From this episode

Signs the economy will keep heating up this summer

David Kelly, chief global strategist at J.P. Morgan Asset Management, says we could see more than 10% annualized economic growth in the second quarter. The first quarter saw GDP growth at 6.4%. Kelly says we're also anticipating data on how the economy did with recovering jobs during May, and he expects it may have added over 800,000 jobs last month. Kelly said that as the summer goes on, the service industry, disproportionately hit by the pandemic recession, will regain its footing. However, spending on goods is also likely to continue, with "so much money in the hands of consumers now," as a result of Wall Street investments, government pandemic relief and more, Kelly said. Lastly, "I think we'll see higher inflation," Kelly said. "And I think there's no harm in that to some extent. I mean, it's just a sign of an economy fixing itself very fast here, but it does mean higher interest rates, and interest rates remain extraordinarily low."

China's 3-child policy met with tepid public reception

There's skepticism about whether the policy change will actually address China's shrinking workforce and older population.
One reason? "The work of raising a child, like in many countries, falls disproportionately on women, and women in China have complained of being penalized at workplaces for being a mother," says Marketplace China correspondent Jennifer Pak.
Noel Celis/AFP via Getty Images

As consumers pay off credit card debt, banks are likely to offer credit incentives

Jun 1, 2021
Banks are already stepping up marketing campaigns to try to get more consumers to use their services.
Since people have been good about paying off their balances, consumers’ credit scores have improved, says Andrew Davidson, who follows credit cards at Comperemedia.
AsiaVision via Getty Images

Lifeguard shortage will mean fewer days at the pool

Jun 1, 2021
Public and private pools are facing closures and limited hours because of a lack of qualified staff for the season.
A lot of lifeguard training was put on hold during the pandemic.
Brett Hemmings/Getty Images

Music from the episode

The team

Nicole Childers Executive Producer
Victoria Craig Producer, BBC
Stephen Ryan Producer, BBC
Jonathan Frewin Producer, BBC
Daniel Shin Producer
Jay Siebold Engineer
Brian Allison Engineer
Alex Schroeder Digital producer
Meredith Garretson Producer
Erika Soderstrom Producer/Director