Answer to Question #97389 in Economics of Enterprise for nevaeh

Question

Having economic data is good for historical knowledge, but it is also essential to attempt to predict future economic activity. Based on the information you found in task 1, compose a 200- to 300-word essay that predicts what you think will happen to the economy in the next year. Use at least five statistics you recorded in task 1 to justify your answer.

Answer 1

For advanced economies, growth is projected at 1.9 percent in 2019 and 1.7 percent in 2020. The 2019 projection is 0.1 percentage point higher than in April, mostly reflecting an upward revision for the United States.

In the United States, 2019 growth is expected to be 2.6 percent (0.3 percentage point higher than in the April WEO), moderating to 1.9 percent in 2020 as the fiscal stimulus unwinds. The revision to 2019 growth reflects stronger-than-anticipated first quarter performance. While the headline number was strong on the back of robust exports and inventory accumulation, domestic demand was somewhat softer than expected and imports weaker as well, in part reflecting the effect of tariffs. These developments point to slowing momentum over the rest of the year.

Source:

https://www.imf.org/en/Publications/WEO/Issues/2019/07/18/WEOupdateJuly2019