This article mentions how there is
strong economic growth in Q4. Specifically, the article mentions how consumer
confidence (CC) has reached an all time high since the last sixteen years. This
high consumer confidence suggests that the economy is in spending mode and not
in saving mode. This high consumer confidence suggests that the economy is in
expansionary mode and thus economic growth will be present.
The article also mentioned how exports fell 4.5% and imports grew more than 9%. Since there is an increase in imports, this suggests that the dollar is strong and that other countries/currencies prefer to export to USA to receive income in dollars rather than import from USA.
However, it will be interesting to see what will happen to the economy next in terms of economic growth and if consumer spending will continue to increase or will a hike in interest rates lead to a more saving and investment culture? I think that when inflation increases then the government needs to implement a contractionary policy so as to get the economy into saving mode and to combat inflation.
The article also mentioned how exports fell 4.5% and imports grew more than 9%. Since there is an increase in imports, this suggests that the dollar is strong and that other countries/currencies prefer to export to USA to receive income in dollars rather than import from USA.
However, it will be interesting to see what will happen to the economy next in terms of economic growth and if consumer spending will continue to increase or will a hike in interest rates lead to a more saving and investment culture? I think that when inflation increases then the government needs to implement a contractionary policy so as to get the economy into saving mode and to combat inflation.
6 comments:
It is always good to see that US economy is doing well. I am hope that this time growth can be sustained. In past few years, US saw some parks of high growth a few times only to be followed by slow growth periods.
this was a very interesting article to read. I wonder if this will continue to happen or if the next quarters numbers will have decreased. growth in the economy is really good since a lot of us are seniors and are looking for jobs right now. it will be interesting to see if trumps tries to limit the amount of imports that the U.S gets and tries to push more for production in the United Stares.
I agree Zach, it would be very interesting to see if Trump sets a quota on trade and limits imports. However, I think the consequences of limiting import effects the economy strongly in a negative way. If Imports decrease and local production increases, then the cost of production would increase which in turn raises prices and would cause inflation.
I think it is interesting that consumer confidence is the highest it has been in the last 16 years, however, it would be interesting to see from a policy perspective if the economy keeps expanding or if a contractionary policy is implemented to slow maintain the growth.
It seems plausible that economic growth will continue to increase in the near future if and when Trump's deregulatory policies in the economic realm is put in place. At the same time, however, a increase in the interest rate by the FED and any number of external economic shocks are also always possible, both of which would halt such expansion rather rapidly.
I'm a bit confused about the real economy situation in America. According to this new, it seems that America economy is getting better and we should be optimistic with the economy situation. However, there are also a lot of news criticizing Trump's policies that bring US economy to be sluggish. Also, according to the article, many countries export to USA and there's less export. It seems not that good. I'm looking forward to seeing what will happen after the high tariff policy implement.
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