Market Prediction: U.S. GDP Will Grow At 3%
Michael Kramer | Dec 08, 2019 04:30AM ET
With global growth returning and the importance of the U.S.-China trade war diminishing, businesses will begin to start reinvesting in CAPEX, and that will cause the U.S. economy to surge from its 2% growth rate in 2019.
h3 Overblown Recession Fear Meltaway/h3Fears of a recession and uncertainty around trade caused businesses to cut back or delay essential investment decisions in 2019. But the recession never materialized. Despite their best efforts, cries from the mainstream media, and the herd-like mentality among investors, the consumer never bought into the hype and as a result, never stopped spending.
h3 U.S.-China Significance Dimisinishes/h3Meanwhile, the number of goods imported from China is declining at a rapid pace, and that means the importance of the trade war will gradual disappear throughout 2020. This will give businesses the confidence to spend more and allow the economy to come back online and result in the U.S. GDP to grow at 3% or more in 2020.
This comes at a time when there is the lowest unemployment rate in half a century.
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