Home / Knowledge / News / Textiles / Moody's raises forecast for US growth to 2.4% in 2017
Moody's raises forecast for US growth to 2.4% in 2017
27
Feb '17
In January this year, Moody's raised its forecast for US growth to incorporate a mix of potential cuts to federal income and corporate tax rates, as well as an increase in public infrastructure spending. Now, Moody's has further raised this growth forecast and expects the US economy to expand by 2.4 per cent in 2017 and 2.5 per cent in 2018.

Previously, Moody's had estimated 2017 and 2018 growth of the US economy at 2.2 per cent and 2.1 per cent, respectively.

The estimated trend pace of growth will be sufficient to absorb remaining slack in the labour market, further pushing up nominal wages and inflation, says Moody's Investors Service in a report. Moody's expects that growth will return to around 1.9 per cent over the medium term.

However, while fiscal policy could support growth in the US, the effect would be offset by tighter monetary conditions as the Federal Reserve continues to raise interest rates.

"It is highly likely that the direction of the world economy over the next two years will be shaped by policy developments in the US," said Elena Duggar, an associate managing director at Moody's. "It is clear that some of the new administrations' proposed policies could have considerable impact on the economic, environmental and geopolitical landscape worldwide."

The impact of shifting US trade policies is already being seen in Mexico with a high likelihood of trade restrictions targeted specifically at Mexico. This will increase risk aversion and dampen sentiment and investment in Mexico by more than Moody's had previously anticipated. After revising growth projections for 2017 and 2018 down in November, Moody's has lowered them again and now expect growth to be even lower at 1.4 per cent in 2017 and 2 per cent in 2018.

For the global economy, Moody's expects expansion this year. The modest momentum of emerging market economies, coupled with developed countries performing close to their potential, will help the global economy expand this year, says the report. However, it adds a word of caution and states that the outlook could still be impacted by significant shifts in US policy on a number of issues, including trade and immigration.

Moody's expects the rate of growth in G-20 countries to pick up to around 3 per cent in 2017 and 2018 from an estimated 2.6 per cent in 2016. Growth in emerging economies will climb to 4.8 per cent this year, and reach 1.9 per cent for advanced economies.

"Global demand is rebounding and much of the adjustment to lower commodity prices is now behind us," said Madhavi Bokil, a vice president and senior analyst at Moody's. "However, structural factors, such as aging populations and high debt levels, combined with a reduced pace of globalisation, put a cap on long-term trend growth." (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Fashion Revolution/Fashion Transparency Index

Apparel/Garments | On 23rd Apr 2018

Transparency helps in swiftly alerting brands

Disclosing key supplier, supply chain and operational information...

Japan’s clothing imports up 4% in fiscal 2017

Apparel/Garments | On 23rd Apr 2018

Japan’s clothing imports up 4% in fiscal 2017

Japan’s imports of clothing and accessories increased by 4 per cent...

Courtesy: Fashion Revolution/Fashion Transparency Index

Fashion | On 23rd Apr 2018

Top global fashion brands now more transparent

Fashion Revolution’s Fashion Transparency Index 2018 reveals Adidas...

Interviews View All

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search