Some are predicting annual GDP growth in the U.S. this year of 5%.
The U.S. economy is on the comeback trail, and that momentum could lift GDP growth to at least 5% this year. This is due in large part to forward-looking capital expenditure plans, spurred by the #2017 Tax Act.
Rick Rieder is the global chief investment officer of fixed income at BlackRock. “We could create 5% nominal GDP this year. That’s a pretty impressive number.”
There are already signs of improvement. The Commerce Department’s latest fourth-quarter GDP reading showed the U.S. economy grew by 2.9%. For 2017, economic growth was 2.3%. This was well above the 1.5% seen in 2016.
Earlier, Atlanta Federal Reserve branch predicted that GDP would reach 5.4 percent in the first quarter of 2018. If the forecast proves to be correct, it would be the best quarter since the Great Recession ended in 2009.