US: Expect GDP growth of 2.8% in 2018 - NAB

Tony Kelly, Senior Economist at NAB, notes thet the US economy grew strongly in Q2 2018, driven by a rebound in consumption and further solid business investment growth.

Key Quotes

“We continue to expect GDP growth of 2.8% in 2018, and for the economy to slow in 2019 (2.4%, previously 2.3%) and 2020 (1.7%) as this year’s fiscal stimulus wanes, monetary policy tightens and supply constraints kick-in. The yield curve is not (yet) pointing to a recession in the immediate future.”

“A more immediate concern is the escalation of the US/China trade dispute, although EU/US trade tensions have settled down.”