Latest Forecasts Show Economy is Doing Okay
Amid grim headlines and a widely-held perception that global growth is slowing dramatically, new economic data forecasts from The World Bank and The Wall Street Journal indicate that neither world economic growth nor the U.S. economy are in bad shape.
Since June 30th, 2018, the economic staff at The World Bank shaved their expectations for global growth by a tenth of 1%. That is a small downward revision compared to the concerns in the media about the trade dispute with China causing a global slowdown that will hit the United States.
On the first Monday of every month, The Wall Street Journal asks 60 leading economists for their forecasts, and their January consensus was unchanged at 2.3% from a month ago for the five quarters through December 31st, 2019. The fourth quarter 2018 forecast was revised up from December by one-tenth of 1%.
The outlook for the economy of the U.S. and the world remained okay, amid heightened volatility and growing fear in recent months, and the Standard & Poor's 500**— a key growth component in a broadly diversified portfolio — closed at 2,596.26 on Friday.
**The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market value weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly into an index.
This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial or tax advice without consulting a professional about your personal situation. Tax laws are subject to change. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.
This article was written by a professional financial journalist for Private Group Wealth Management, LLC., and is not intended as legal or investment advice.
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