3/19, 12:28 PM (Source: TeleTrader)
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US GDP growth to slow in 2019 due to trade - survey

The gross domestic product (GDP) of the United States is set to sharply decelerate in 2019 compared to the year, and continue to decrease next year but at a slower pace, found the Fed survey for March conducted by CNBC and published on Tuesday. Among reasons cited for the slowdown are trade frictions and the related global slowdown in growth.

According to the survey, GDP growth in 2019 will be 2.3%, down from 3.1% in the year before, while in 2020 it will slide to 2.0%. The 43 respondents, including economists, fund managers and strategists, also believe that the Federal Reserve is less likely to raise rates in the next 21 months, seeing only one hike. Around 60% of them see a hike this year, 18 percentage points down from January's figure.

Hank Smith of the Haverford Trust Company believes US President Donald Trump should lower all tariffs and make a trade deal with China, if he seeks reelection next year. "This will cause business confidence to rise and capital spending to increase, stimulating the economy," he claimed. China deal is believed to be coming this year by 79% of respondents, while only 2% see new tariffs being put up. A little more than a half, or 51%, approve Trump's economic policies, with 32% having the opposite opinion.

Breaking the News / NI