North America
Article Abstract:
US domestic growth appears sustainable, with profits and investment growing strongly and consumer demand likely to increase its growth rate. The US current account deficit has risen despite a rise in export volumes. The deficit looks set to drop due to structural changes. Inflation is subdued, but some increase in interest rates is likely. The US dollar should be firm in 1997 but could drop in 1998. Meanwhile, the Canadian economy has shown higher economic growth, and the currency has been hit by political uncertainty, though should be backed by fundamentals over thelonger term.
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1997
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North America
Article Abstract:
There is concern that strong US economic growth could lead to inflationary pressure and this means that monetary policy is likely to be tighter. Bond yields look set to rise in 1998 with higher inflation and interest rates. The US dollar is likely to be stable in relation to pound sterling, but may become weaker in relation to the German mark. Meanwhile, Canada is seeing stronger economic growth, though unemployment is still high. Canadian monetary policy is likely to be tightened and the Canadian dollar could appreciate in relation to the US dollar.
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
North America
Article Abstract:
US economic growth was 5.6% for 1st qtr 1997 compared to the previous year, helped by consumption and investment. Consumer debt levels are high in relation to income but not financial assets, and high growth levels appear more likely than recession. Inflation has been subdued but interest rates have been raised to prevent future inflation. Meanwhile, looser Canadian monetary policy is helping to boost growth in that country, though political uncertainty could affect the economy.
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1997
User Contributions:
Comment about this article or add new information about this topic: