Expected U.S. GDP Growth Rate Going Forward



Expected U.S. GDP Growth Rate Going Forward

Introduction

The U S began its roots in domestic trade products in three different centuries. By forming thirteen farming colonies, the economies made a living in which they could survive. Though, in 1776 the colonies felt the need to join together to form the United States and thus became an industrialized world by manufacturing coal, iron, and oil. Every month the Bureau of Economic Analysis (BEA) updates the trend, forecasts, and statistics for the GDP. It announces the growth of the GDP and depicts how quickly the economy has flourished from the last quarter. The BEA suggests that the quarterly yield should be 2-3% because this steady trend will assist the economy in job production without causing inflation. The only time the BEA would suggest a higher quarterly yield would be when there is a recession because it will keep the economy's unemployment rate to a minimum (Rogers, 2006) (Feldstein, 2010).

Trends portray the magnitude in which a country will survive depressions and recessions. Every depression's truncated point usually ends in a great recovery that boosts the economy to a higher standard than previous. Trends within the United States showcase a growth for the country and ensure a 3.2% growth projection within 10 to 20 years (BEA.gov). This is because the trend has steadily progressed from previous decades by at least 2.4% and will continue to increase. Reason being, analysts' prediction for the 20 year average suggests that the growth from 2011 would only raise the GDP by 2.7%, which will only yield 3.0% and will in turn be just enough to come out of a recession. This is the reason that analysts believe that the 10 year moving average will not be sufficient for the United States GDP ...