How Could The Global GDP Impact U.S. Ag Exports

Typically, the Gross Domestic Product, better known as the GDP, grows every year, but not in fiscal year 2020. Global GDP is expected to be down by about 5% from 2019, thanks to the coronavirus pandemic. But according to USDA chief economist Rob Johannson, this is a bounce back year.

"World GDP gross is expected to be at 3.7% for 2021," he noted. "While that's good it's still not quite as high as we had had pre-COVID. So the economy is still taking some time recover."

But recover it will. And Johannson said the actual amount of recovery is still uncertain since fiscal year 2021 wont start until next month. Generally, the stronger the world's economy, the exports of U.S. Ag products to the world. And with the world economy expected to grow 3.7% USDA is forecasting U.S. Ag exports to rise about 4% in 2021.

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