US Economic Performance

According to the IMF, it is anticipated that America’s economy is on track to fare better than that of Canada, Germany and Japan.  Predicted contraction rates are:

  • America: 4.4 percent
  • Japan: 5.3 percent
  • Germany: 6 percent
  • UAE: 6.6 percent
  • Canada: 7.1 percent
  • France: 9.8 percent
  • UK: 9.8 percent

It is thought that the “macroeconomic good fortune” of the United States can be attributed to Washington’s spring stimulus. Plus, America does not have to rely on exports for its growth since such sales only account for 12 percent of US GDP.  This is pretty low when you look at the 32 percent in Canada, 47 percent in Germany and 18 percent in Japan. According to Moody’s Analytics Mark Zandi the greater flexibility of America’s labor market helps as:

 “Americans are more willing to adopt new technologies, to move for a job, and [to] make big changes in how they live and work.”

This is good news for the US economy.

US Economy: Heading into 2019

Lowering of gas prices in 2019

How are things going to look for the average Joe in the street in 2019 in America?  Well, we can’t predict what is going to happen but herewith a few positive tidbits for money-savers.

Since close to 90% of Americans own cars (second  highest number in the world) the fact that gas prices are going to decline this year is huge. This will be the first time gas has gone down for Americans since 2016.  As GasBuddy Petroleum Analysis Head Patrick DeHaan said:

“2019 sets the stage for the first decline in the yearly national average since 2015, but before motorists drive for joy, it may be prudent to remind them that 2019 will still be the second most expensive year to fill up since then.”

The job market also continues to thrive.  According to Moody Analytics’ Chief Economist Mark Zandi, unemployment figures are very low and are set to continue to drop in 2019.  Indeed, the figures for December 2018 were just 3.7% unemployment (nationally), lowest they have been in nearly five decades.  As well, there is a staggering amount of new job openings in almost all sectors.  As such, it is anticipated that salaries will increase from around 3 to 3.5 percent by 2020.  This gives employees the “upper hand” with their bosses.