Predictions For 2014: The EconomyBy: Tina Volpe - December 26, 2013
American’s have lived through the worst recession since the “Great Depression.” It all started in 2008, and we’re not out of the woods yet. Not many can claim it wasn’t a difficult time, but is there more to come, or do experts see a light at the end of the tunnel?
It appears as if things might just be looking better as far as the economy, housing and jobs are concerned.
NPR announced, according to the economist Nariman Behravesh who puts out an economic forecast every year that he’s predicting the U.S. economy will do better in 2014, which will help the unemployed and also the long-term unemployed.
According to Nariman Behravesh the US gross domestic product (GDP) grew slowly in 2013, estimated at 1.9 percent – but it looks as if it is strengthening, and estimated to grow 2.7 percent in 2014.
Another analyst, David Berson contributes the future growth to “Stronger growth will come from lower oil prices, improved international growth, rising household net worth, and less fiscal drag.”
The unemployment rate is forecasted to fall to 6.5 percent, even lower according to the Federal Reserve – who recently lowered its US unemployment forecast for the year, projecting it to fall as low as 6.3 percent.
The experts said about inflation: “Inflation is projected to remain low, and (importantly) below the Fed’s long-term goal of 2.0 percent for 2013,” Berson at Nationwide wrote.
And the housing market – well things are already looking up, according to Zillow – prices and sales are nearing pre-bubble levels, and mortgage rates will continue to rise.
Available homes are growing and foreclosures are dropping. “Housing, autos, and manufacturing should be the strongest sectors of the economy,” Berson writes.
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