FRIDAY, APRIL 12, 201317:09:02
Bloomberg forecasted a 3 per cent GDP growth from Jan to Mar
US economy grows in 2013
On 12 April, Bloomberg reported that the US economy will develop by 3 per cent from January through March 2013. The forecast for the increase of the national GDP was also confirmed by Morgan’s Stanley Chief US Economist Vincent Reinhart.
Reinhart now sees a 3 per cent growth in the first quarter of 2013, up from 0.8 per cent in December. Moreover, the chief economist of JP Morgan Chase Bruce Kasman raised even more Bloomberg’s forecast to 3.3 per cent. Kasman told the financial news agency, “what happened at the beginning of the year was a genuine surprise in terms of how well the economy held up.”
The growth of the US economy was based in the rise of consumer spending together which accounts approximately 70 per cent of the national economy. According to the survey, consumer spending rose by 3 per cent, recording the best figure since the same period in 2011. Reinhart commented, “we are surprised that there wasn’t a bigger and more immediate hit to spending” by consumers. “There is an underlying momentum in spending, which means that sequestration and the tax increase will only lead to a momentary pause.” In addition, Karen Hoguet chief financial officer of Macy’s said in an investor conference in March, “we feel good about the consumer in 2013. Every indication we’re seeing is that he and she are doing fine, still buying.”
Despite the fact that the US will impose automatic government cuts this quarter to avoid the growing national deficit, the data indicate that the US economy will may be able to weather the storm.
However, on 22 March, chief economist of Swiss Re Kurt Karl commented that the decision by the Federal Reserve to maintain the target Fed funds rate at zero to 25 basis points, “will slow growth and delay the first rate hike by the Fed into early 2015.” Karl predicted that the US economy will grow by 2 per cent in 2013.
Apart from growth, it is important to emphasise that according to Bloomberg, the US produced 84 per cent of its own energy in 2012, indicating country’s energy independence. In detail, the U.S. production of crude oil in the fourth quarter of 2013 will exceed imports for the first time since 1995. NEW EUROPE ON LINE
No comments:
Post a Comment