Economists: Trump presidency will boost economic growth


President-elect Donald Trump’s upcoming term has some economists predicting a boost in the economy and an increase in interest rates and inflation, according to an article by Josh Zumbrun for The Wall Street Journal.

The economists in WSJ’s survey said some of the risks to the economy in the upcoming administration includes the risk of international trade wars, according to the article.

From the article:

The change of administration could “knock the U.S. economy out of its low-altitude, low-growth orbit,” said Sean Snaith, director of the Institute for Economic Competitiveness at the University of Central Florida. The question is, he said, “Will it put the economy in a higher growth orbit, or will it knock us down into the atmosphere and a fiery re-entry?”

On average, economists marked up their growth forecasts. The economy could expand 2.2% in 2017 and 2.3% in 2018, as a fiscal stimulus kicks into gear, up from about 1.5% over the past 12 months. Inflation is seen at 2.2% next year and 2.4% in 2018. If correct, it would be the first stretch of sustained inflation above 2% since before the recession of 2007 to 2009.

On the other hand, some experts in the survey are still nervous about what the future will hold.

From the article:

“Uncertainty on major policy issues limits hiring and investment decisions,” said Robert Dietz, chief economist at the National Association of Home Builders.

The survey was conducted among 57 business and financial economists.

Other housing experts presented a divided opinion on the effect that Trump’s policies will bring to the economy and housing market.

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