The economy is revving up again.

Investors and strategists anticipate that the economy will continue to roar for the rest of the year. Now that the first quarter of 2021 is in the rearview mirror, investors will hear about giant GDP projections.

The nation economic growth will pick up in the second quarter as the pandemic-affected sectors of the economy reopen. For months, the stock market has been trading higher on these expectations. However, if the flurry of activity results in a better earnings outlook, it could further fuel the rally. Stock analysts believe the market's trajectory will be higher, but gains will be slower than in the past.

In March, the Conference Board's consumer confidence index rose 19.3 points to 109.7, one of the highest increases on record. It is the highest level of confidence in the pandemic era. Consumers are beginning to travel again due to the recovery in good spending.

In comparison to other economic heavyweights, Europe remains the perpetual recovery laggard. The European economy is expecting to accelerate through the entire economic cycle in 2021, from a double-dip recession in the first half of the year to a consumption-led catch-up growth spurt in the second half.

Nonetheless, in comparison to other economic heavyweights, Europe's recovery appears set to disappoint, with key drivers including delayed vaccine rollout and a smaller and slower fiscal response. Even though Europe have a more significant GDP contraction in 2020 than the US, growth prospects for 2021 are significantly lower.

Due to the delayed recovery, the risky European assets may even find themselves in a better position, with more upside potential than their US counterparts. In comparison to other economic heavyweights, Europe remains the perpetual recovery laggard. We expect the European economy to accelerate through the entire economic cycle in 2021, from a double-dip recession in the first half of the year to a consumption-led catch-up growth spurt in the second half.