A group of 66 economists surveyed by the Wall Street Journal projects U.S. economic growth to accelerate 3 percent in 2015 and unemployment to fall to 5.2 percent. CCTV’s Daniel Ryntjes reported this story from U.S. Federal Reserve in Washington D.C.
US economy predicted to grow 3 percent in 2015A group of 66 economists surveyed by the Wall Street Journal projects U.S. economic growth to accelerate 3 percent in 2015 and unemployment to fall to 5.2 percent. CCTV’s Daniel Ryntjes reported this story from U.S. Federal Reserve in Washington D.C.
“If we all do our part, if we all pitch in then we can make sure that this rising tide is actually lifting all the boats, not just some. We can make sure that the middle class is the engine that powers American prosperity for decades to come,” U.S. President Barack Obama said.
Economists are expecting to see the first substantial wage increases, as the pool of skilled workers narrows and corporate profits increase.
Lower fuel prices also helped ordinary Americans. That’s especially good news in a country where two-thirds of the economic activity comes from consumer spending. On average, each household is expected to save about $500 a year at the gas pump.
However, the drop in oil prices has led to declines in U.S. energy investments and job losses, affecting a few states such as Texas, Alaska and North Dakota. Economists said there will be an impact on U.S. exports.
Given that the U.S. represents about 27 percent of the global economy, it’s expected to support global growth this year. Low oil prices have kept inflation in check in the United States, which reduces the chances the Federal Reserve will make dramatic changes to interest rates in 2015.
John Herrmann of Mitsubishi UFJ Securities discusses 4th quarter GDP
CCTV America interviewed John Herrmann, director of U.S. rate strategies and Mitsubishi UFJ Securities about corporate earnings and fourth quarter GDP statistics.