Economists polled by Reuters indicate that the US economy faces a greater risk due to the ongoing coronavirus pandemic than due to disputes between Trump and Biden over the results of the recent presidential election. Economic recovery in the near future is slowing down more severely than previously anticipated, especially on account of the second wave of the pandemic currently underway.

More than 90% of the economists polled highlighted the spike in coronavirus infections as the bigger risk to the US economy through 2020. The prevailing uncertainty around the fate of the presidential election and Biden’s victory is expected to have a smaller impact on the economic outlook for the country.

The outlook for the US economy remains highly uncertain despite recent encouraging reports about COVID-19 vaccines as the number of infections and hospitalization continue to climb higher. US equity markets rallied over the past week and could do so this week too, but are also likely to face pressure from the spike in infections and President Trump’s legal battle against Biden’s victory.

In the poll, the economists also highlighted the uncertainty around the next round of fiscal stimulus measures as a risk to economic recovery in the US. In addition, with several parts of Europe imposing lockdowns once again to tackle the spread of the pandemic, there are concerns that similar restrictions could be announced in the US as well, which would further deteriorate economic conditions.