An economic forecast tries to predict the future of the economy based on several factors including housing prices, unemployment rate, GDP and interest rates. Expectations in the U.S. economy in the year 2013 are slightly improving over the last several years of a dismal outlook. Over the last several years, housing prices had been dropping rapidly, but in the last year, prices have leveled off and are slightly on the rise again. This implies that there is a growing demand for houses and supply is less than it was before. With interest and inflation currently at very low rates, people are able to afford to buy houses. Add to that decreasing unemployment rates and you have the recipe for an improving economy.
According to Bill Gross who is a chief investment officer, GDP growth expectations have doubled for 2013 from 2012 to about 3% growth; several other sources predict anywhere from 1-3% growth in GDP. As expectations rise, people will start to spend more money creating more growth in the economy. Fiscal policy like higher taxes for the upper tax brackets are also believed to influence the economy in the long run. Confidence in the U.S. markets also has to rise in order to improve our economic condition. It is difficult to get out of the economic slump we have been in for the last few years, but it seems like people and businesses are slowly recovering and moving towards growth and expansion in the years to come.
References
1. http://www.bloomberg.com/news/2013-03-08/gross-raises-u-s-economic-growth-forecast-to-3-in-2013.html
2. http://www.conference-board.org/data/globaloutlook.cfm
References: 1. http://www.bloomberg.com/news/2013-03-08/gross-raises-u-s-economic-growth-forecast-to-3-in-2013.html 2. http://www.conference-board.org/data/globaloutlook.cfm
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