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10 Dec 2014
US GDP to strengthen to 3% in 2015 – NAB
FXStreet (Barcelona) - Tony Kelly, Senior Economist at the National Australia Bank, notes that US GDP growth is expected to strengthen in 2015 to 3.0%, from 2.3% in 2014, supported by positive economic conditions, fiscal policy expectations and the declining oil prices.
Key Quotes
“GDP growth may slow in the December quarter as some temporary factors that boosted growth in the previous quarter drop out. However, rising business and consumer confidence, improving balance sheets, a strengthening labour market, solid investment conditions including easing credit conditions, declines in oil prices and a fading headwind from fiscal policy suggest that the U.S. is likely to see a stronger rate of GDP growth in 2015 - we are projecting 3% compared to 2.3% for 2014.”
“Headwinds are coming from the appreciation of the dollar and monetary policy is likely to start tightening from mid next year. Low inflation (actual or expected) remains the main risk that may delay rate hikes.“
Key Quotes
“GDP growth may slow in the December quarter as some temporary factors that boosted growth in the previous quarter drop out. However, rising business and consumer confidence, improving balance sheets, a strengthening labour market, solid investment conditions including easing credit conditions, declines in oil prices and a fading headwind from fiscal policy suggest that the U.S. is likely to see a stronger rate of GDP growth in 2015 - we are projecting 3% compared to 2.3% for 2014.”
“Headwinds are coming from the appreciation of the dollar and monetary policy is likely to start tightening from mid next year. Low inflation (actual or expected) remains the main risk that may delay rate hikes.“