Prospects For The Us Economy

The news informs everyone on a daily basis that the United States has the largest economy and that it is looking to be in great shape since four years ago. To some Americans it seems otherwise. The unemployment rate in 2007 was 4.6% compared to unemployment rate in 2012 at 7.5%. The U.S inflation rate ended in October 2012 after twelve months was 2.16% which is 0.11% higher than the one in September. The U.S inflation forecast consists of apparel, education and

The forecast for US GDP for the next five years is positive with an average rate of 1.94 percent. From 2016 to 2020, the growth of US GDP as per the forecast will be 2 in 2016, 1.8 in 2017, 1.9 in 2018, 2 in 2019 and 2 percent in 2020 respectively (United States | Economic Forecasts | 2016-2020 Outlook). According to the actual or aggregate forecast for the next five years, US GDP will be $ 18,295 billion in the year 2020. Therefore, the trend is positive, and US GDP will continue to rise gradually.

My prediction is that GDP will increase steadily in the future. According to econedlink.org, a nation’s maximum or potential GDP or its potential output is the highest level of output that can be maintained over the long term, given any constraints on the nation’s productive resources. And a limit supply of labor, natural resource, service and capital will result in the limit of potential output, which means, the limit of GDP (2015, econedlink). Besides, according to our textbook, the determinants of economic growth to which we can attribute changes in growth rates include four supply factors: changes in the quantity and quality of natural resources, changes in the quantity and quality of human resources, changes in the stock of capital goods, and improvements in technology (2015, McConnell)

Summary: The end of 2016 had 2% economic growth, that continues to slowly grow. The growth of economy means that there is an increase of goods and services. President Trump has tried to make proposals, such as the growth of GDP (gross domestic product), but many of these proposals seem to possibly cause a trade war. A trade war would have a bad result for America, because of the cost it would cost the economy, government and taxpayers. The slower growth of the economy has different explanations, like the “internet bubble,” but no sure answer. Trump’s more bigger plans for economy growth is to invest in new automated plants, worker training, fuel growth and retraining should improve long-term productivity, helping with more mass production.

The United States is not only one of the largest economies in the world, but it is also one of the strongest economies compared to industrialized countries, and this has been proven in the last few years. Despite of what many people believe or see, U.S economy is booming and it will continue to boom during the year 2015. In the article “When the U.S Economy is the Envy of the World,” published by the MSNBC on December 8, 2014, its author Steve Benen argues about the U.S economic recovery in order to persuade U.S citizens and show them the numbers that prove that our economy has recovered. Benen (2014) also encourage U.S citizens not “to compare the current economic recovery to other recoveries that followed modern downturns,” but “to compare our economic recovery against other countries who dealt with similar circumstances” because according to President Obama, the U.S “has put more people back to work” than any advanced economy in the world (qtd. in Benen, 2014). There are strong evidences that prove that the U.S economy is in its best year compared to three years ago. The growth of jobs, the slight increase of wages, and the low price of oil have truly helped the U.S economy recover.

Economist are already predicting rapid growth in the U.S. just by the policies that President-elect Trump is proposing. I know for a fact that business here in Florida were just waiting for the election to be over so they would know whether to grow their businesses or not. Some have been gearing up to explode if Trump won and they are very pleased with the Presidential election and already have plans in place to expand their businesses. Of course there is some uncertainty about the trade policies of President-elect Trump and if that will hurt global growth and possibly cause higher prices. It is a delicate balance Trump will have to take in order to set off a Trade War with China. The Organization for Economic Cooperation and Development is predicting the U.S. economy will grow 2.3 percent in 2017 and 3 percent in 2018 based on Trumps “$500 billion on infrastructure, sharply revised personal and corporate tax conditions and deregulation in the private sector (Soergel, 2016)”. It will take some time for people to feel or see things getting better, as for me I can hardly

The recovery in US manufacturing has its roots in three developments: 1) the stabilisation of oil prices, 2) an easing of an inventory overhang that prevailed in 2015-16, and 3) a weaker dollar exchange rate. The bulk of the impact of the post-July 2014 decline in oil prices was felt via a large decline in capital

The United States is the leading economy across the globe and experienced several tribulations in the recent past following the 2008 global recession. Despite these recent challenges, there are expectations among policymakers and financial experts that the country will experience solid economic growth. Actually, financial analysts have stated that the U.S. economy will be characterized by increased consumer spending, increased investments by businesses, reduced rate of unemployment, and reduction in government cut. Some analysts have also stated that the country’s economy will strengthen in 2014 with an average of 2.7 percent or more. However, these predictions can only be understood through an analysis of the current macroeconomic

In 2014, economist, predict the housing market will recover, and the interest rates will gradually go up increasing the money in the pockets of the consumers. There are many predictions to what approach the government should take to recover the housing market, but ultimately it will be important for the government leaders to prove they can react quickly if any plan backfires. In 2014, many are predicting the housing market to recover and interest rates gradually go up, putting more money in the pockets of the consumers, but this act can also halt any growth in the housing market. There are many predictions to what approach the government should take, but if the economy starts declining, will the government be resilient and adaptable to change course and continue to grow the economy.

Americans have been bombarded by new worries in recent days with the war in Libya, unrest in much of the Middle East, and the seemingly endless series of catastrophes in Japan as reported by a recent Gallup poll measuring economic confidence. Added to that, there is a weak job market, increasing fuel prices, and fierce budget battles in Congress, obviously, it is clear the U.S. economy still faces

The current rate of GDP growth, according to the Bureau of Economic Analysis, is 2.7% (for Q3), and it was 1.3% in Q2 of this year. This rate reflects relatively slow growth, with challenges remaining in the domestic market and with sluggishness in Europe suppressing exports to that region. The rate of GDP growth is predicted to slow to a decline of 0.5% between Q4 2012 and Q4 2013, the US re-entering recession, according to the Congressional Budget Office's projections. These projections are based on the provisions of the Budget Control Act being enacted, though any observers are doubtful that this will occur.

Looking back over the past ten years and most especially the past three years for investment returns and economic possibilities, there seems to be more growth in the past 24 months than what we have seen in over a decade. The rapidly changing international economic climate and the current government struggles with tax based polices and the continued climbing US

In viewing the macroeconomic conditions of our global economy, we see that the global economy is still very fragile going into the third quarter of 2016. Currencies showed to be very volatile after the British exit of the European Union. The 11 percent drop in the pound sterling was the greatest we have seen since the global financial crisis. The global economy shows very little momentum in the first half of 2016. Global growth shows to be barely above 2% in 2016. Analyst are predicting that global growth will continue to be very minimal and will remain slightly above 2 percent in Q2.

The “current macroeconomic situation” in the U.S. has improved greatly over the past few years. With the stock market at an all-time high, with data trends of unemployment trending down from 5.4 percent in April, 5.5 percent in May and now at an all-time low of 5.3 percent in July (U.S. Bureau of Labor Statistics, 2015). Last quarter economic growth was at 5 percent, relative mild consumer price-inflation, and the bonanza of cheap gas, there is increased optimism about the U.S. economy (Chafuen, A, 2015). Yet most of America is still concerned about unemployment, inflation and recession. Per CNN, only 42% of American’s thought the economy was in good shape. That is not even half of America but the numbers are the best they have been in

The IMF, in its 2010 published report, expects an average global growth rate of three percent. This is due to countries such as China, India and Russia. Thanks to them, the financial crisis in rich countries will not lead to a complete economic collapse, but will only slow down growth, experts say. In industrialized countries, stagnation or even recession will occur - in the best case the IMF expects zero growth. Great Britain, France and Italy will experience serious difficulties, in the United States the growth will be minimal, the Germans can expect a stagnation. (International Monetary Fund, 2017).