Economists Say Economic Growth May Not Advance Higher Than 2.5% Beyond 2018
Though the stock market surged to a 13-year high in December, reflecting consumers' and investors' confidence in President Donald Trump’s ability to spur economic growth, many economists believe that growth will be temporary.
Economists forecast 2.4% growth in 2017 and 2.5% growth in 2018, and while those estimates are above pre-election forecasts, they are below the market’s current pace and Trump’s goal of 4% growth, the Wall Street Journal reports. Economists largely predict growth will cut back to 2.1% in 2019 and beyond, exactly what it was before Trump won the election.
Experts said Trump’s policies, like his $1 trillion infrastructure plan, could stir economic growth for a time, but in the long run sustained growth boils down to the size of the working population and that population’s productivity.