U.S. development has been growing in a healthy way. According to the recent reports it has been seen that the expected rate of the GDP growth has been expected at the rate of 2-3% which is an ideal range. The president has forecast the growth in the upcoming year at a rate of 4%, which is faster than the healthy growth rate. Here is an overview by FinanceShed on U.S. status on unemployment and overall outlook and Job Market.
The employment also has been normal in the country, the unemployment rate is also at the normal rate and there is not much inflation and deflation in the economy in the past few years. Thus there are not many ups and downs in the economy and have stability.
Many a time it is not possible for a nation to grow due to over-ambitious targets. Many a time when you try to achieve a higher growth rate, the nation will be facing the troubles like overconfident exuberance. There will tremendous changes in the business cycle of the country as you need to increase the demand and supply in the country so that to achieve a higher growth rate. Thus it is said that you need to achieve the growth rate at a healthy rate and to achieve a proper growth rate.
Overall View Of The Economic Condition Of The U.S.
The GDP growth of the U.S. has begun to become slower to 2.1% in the year 2019 from the high rate of 3% in the year 2018. It is estimated that there will be a decline in growth rate in the future, the rate estimated in the year 2020 is 1.9% of growth and 1.8% in the year 2021. The declining growth rate is supported as the side effect of the trade war between the countries and the economic policies formulated by Trump.
There is also observed in the economy that structural employment is increasing by a greater rate. The unemployment rate in the year 2019 has been estimated to be 3.7% which is likely to be increased to 3.9% in the year 2021. But it is seen that there are more people who are moving towards a full-time job from the part-time job they are doing at present, as most of the jobs nowadays are low paying than the average salary.
There are many of the industries which are growing more than the general economic growth. The U.S. manufacturing industry is expected to grow at a rate of 3.9% in the year 2019. It is expected to decline slightly to 2.4% in the year 220 and 1.9% in 2021. This will be the result of the capital growth and the higher exports planned by the country.
Impact On Interest Rates
The interest rates have been raised to 2.5% by the federal open market committee. It is assumed that there will be no increase in the interest rate in the upcoming years. The fed funds rate controls the short term and long term interest rates prevailed in the country. These controls include the rates like the prime rate, labor, credit card rates, etc.