North America
Article Abstract:
Domestic demand remains strong in the US, with annualized real gross domestic product growth rising to 5.6% in the fourth quarter of 1998. The main factors fuelling domestic demand are the strength of job prospects and real income growth, record stock market levels and declining interest rates. It is forecast that the US economy will slow in the medium term, with the rate of growth declining to around 2%, just below its sustainable potential. A recession is unlikely, as policy changes will prevent a serious slump in confidence.
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1999
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North America
Article Abstract:
The US continues to enjoy strong economic growth, but there is evidence of strain in the economy. Credit expansion is still rapid, and savings ratios are negative. The current account deficit reached a record $80.7 billion in the second quarter of 1999. There is a risk that the economy will weaken substantially in the period to mid-2001. In Canada, commodity prices and manufacturing exports have strengthened, while falling unemployment and stronger incomes are fuelling domestic demand.
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1999
User Contributions:
Comment about this article or add new information about this topic: