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Predicting Economic Activity

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.

User Kara Woo
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1 Answer

16 votes
16 votes

Answer:

A popular writer and economist once said that there have not been a period of negligible economic growth in the United States without proportionate investment. No investment really give a proper return on investment within the same cycle especially a governmental investment.

We are in trying times due to a pandemic called the corona virus and this has made economic prediction one of the most difficult factor to predict as we can not foresee when a crises loom in the air. However, all thing being equal, advanced countries like the US project their economic growth 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 movement while 2020 as it stand at this moment is falling below expectation due to the current global crisis of COVIS-19

In the United States, 2019 growth was expected to be 2.6 percent (0.3% point higher than in the April WEO), adjusting to 1.9% 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.

Also, considering the current health pandemic ravaging the US. it has pushed the US to propose acquiring a loan of about two trillion dollars. This will negative have an impact on the country reserve, causing a possible inflation, drop in oil price in coming year 2021 an consequentially create a ripple effect slowing momentum of the economy over the rest of the year into next year.

Step-by-step explanation:

I had to write the same essay last week

I hope this helps

User Julien Bourdon
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