Why the US economy will grow to 2020 year

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At this strange time for the economy, when stock markets start low, analysts at Morgan Stanly claim that the US economy will not only withstand, but even grow to 2020.

Reasons for strengthening the dollar and the economy:

1. Reducing unemployment

Recent economic reports showed that, on average, 200 added thousands of jobs per month in the US, and this is the second place in terms of employment growth since 1999. American confidence is growing in the strength of the American economy, which is reflected in the increase in consumer spending. According to a University of Michigan study, consumer sentiment index averages 92,9 percent last year. This is the highest since 2004.

2. Fewer Americans are overburdened with loans.

Previously it was difficult for the consumer to reduce the debit to credit. Mainly due to rising unemployment and a precarious economy. Now, analysts at Morgan Stanly note that non-payment of loans by the population for the first time fell below 4%. This is the lowest level in the last three decades.

3. Corporate concerns

Morgan Stanley has noticed executives' reluctance to spend money on big-ticket items. For example, capital spending fell in key sectors such as energy, telecommunications, and consumer goods. Large companies have also sharply improved their balance sheets.

Как писал Previously, “Forum”, American employers created 292 thousand new jobs in December - more than last year was only in October. And the unemployment rate has reportedly halved over the past 12 months.

Experts believe that, despite the crisis in the global economy and unrest in stock marketsThe US economy is growing at a steady pace, which is also indicated by steady employment data.

According to experts, this situation in the labor market will allow the US Federal Reserve to continue to gradually increase the interest rate.

16 December Fed raises federal funds rate for the first time since 2006, which was regarded as a sign of economic recovery after the Great Recession.