Most regions were beginning to see an acceleration in economic growth during January and February 2020. The 20-state Heartland was poised to see a notable improvement in economic performance that will now be tested due to public health measures implemented to contain the spread of the coronavirus. The additional $200 billion in purchases of grain, industrial supplies and manufactured products over the next two years that China agreed to in the Phase I trade deal will benefit the Heartland greater than any other region of the nation. While that stimulus will be delayed until early summer, there will be a meaningful boost to the Heartland’s economy that should aid its recovery rate from COVID-19. The federal (both monetary and fiscal policy), state and local policy responses will be essential to mitigate the severity of the impacts and spur a more rapid economic recovery.
