prasad1
Active member
This article is for a global investor and may not make sense to others.
The United States is back, and ready to drive global growth in 2015.
After long struggling to claw its way out of the Great Recession, the world's biggest economy is on an extended win streak that is edging it closer to full health. But the new year doesn't look quite so bright in other major countries. China is slowing as it transitions from investment to consumption. Japan has slid into a recession. Russia appears headed for one. Europe is barely growing.
And the U.S.?
Six years after its financial system nearly sank and nearly that long since the recession ended, the United States is expected to grow in 2015 at its fastest pace in a decade. Its expansion from July through September — a 5 percent annual rate — was the swiftest for any quarter since 2003. That pace will likely ease a bit. Still, the economy is expected to expand 3.1 percent next year, according to a survey by the National Association for Business Economics. It would be the first year of 3 percent growth since 2005.
The acceleration of U.S. growth is a key reason the global economy is also expected to grow faster, at about 3 percent, up from 2.5 percent in 2014, according to economists at JPMorgan Chase and IHS Global Insight.
CHEERING CHEAPER OIL
Plunging oil prices are a big reason for the optimism. Prices have been cut roughly in half since summer. In some areas of the country, gasoline prices have slipped below $2 a gallon.
SWIRLING GLOBAL HEADWINDS
Even if the U.S. economy does strengthen further, the rest of the world could struggle. For one thing, faster growth will likely lead the Federal Reserve to raise interest rates in 2015, which could draw more investment from overseas.
POWERING US CONSUMERS
In the United States, consumers are the main drivers of growth. And fortunes are looking up for more households. Employers are on track to add the most jobs in 15 years in 2014. As a percentage of income, Americans' debt has dropped to 2002 levels.
http://finance.yahoo.com/news/why-us-power-world-economy-2015-170637164--finance.html
The United States is back, and ready to drive global growth in 2015.
After long struggling to claw its way out of the Great Recession, the world's biggest economy is on an extended win streak that is edging it closer to full health. But the new year doesn't look quite so bright in other major countries. China is slowing as it transitions from investment to consumption. Japan has slid into a recession. Russia appears headed for one. Europe is barely growing.
And the U.S.?
Six years after its financial system nearly sank and nearly that long since the recession ended, the United States is expected to grow in 2015 at its fastest pace in a decade. Its expansion from July through September — a 5 percent annual rate — was the swiftest for any quarter since 2003. That pace will likely ease a bit. Still, the economy is expected to expand 3.1 percent next year, according to a survey by the National Association for Business Economics. It would be the first year of 3 percent growth since 2005.
The acceleration of U.S. growth is a key reason the global economy is also expected to grow faster, at about 3 percent, up from 2.5 percent in 2014, according to economists at JPMorgan Chase and IHS Global Insight.
CHEERING CHEAPER OIL
Plunging oil prices are a big reason for the optimism. Prices have been cut roughly in half since summer. In some areas of the country, gasoline prices have slipped below $2 a gallon.
SWIRLING GLOBAL HEADWINDS
Even if the U.S. economy does strengthen further, the rest of the world could struggle. For one thing, faster growth will likely lead the Federal Reserve to raise interest rates in 2015, which could draw more investment from overseas.
POWERING US CONSUMERS
In the United States, consumers are the main drivers of growth. And fortunes are looking up for more households. Employers are on track to add the most jobs in 15 years in 2014. As a percentage of income, Americans' debt has dropped to 2002 levels.
http://finance.yahoo.com/news/why-us-power-world-economy-2015-170637164--finance.html
