Tuesday, January 23, 2018

High Growth of 3% Expected in the US over 2018

According to the IMF we should have significant growth around the 3% range for 2018. A pretty good haul considering we haven't done that well in quite some time over a sustained period. In their quarterly World Economic Outlook they indicated that much of this is due to the corporate tax rate being cut from 35 to 21 percent. 

There are a few things we can expect from such growth. 

-Inflation will rise a little as growth often equals more return on investment and additional cash in the system. 

-Employment will likely improve. While we are working at a solid employment rate now we can expect a little tighter labor market. 

-New training to meet new jobs will likely increase. As the labor market gets tight and new jobs open up people will need additional training. 

While much of this growth is experienced world round and the tax credit is not the immediate direct cause we can expect it to make some influence. With returning investment back to the U.S. the trend of growth is likely to be longer. Not sure what that would be worth without significant investment of time in research previous trends under similar circumstances. 

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