Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) anticipates that the U.S. economy will get stronger steadily in the current year. The factors that will help it improve include growing employment sector, declining commodity prices, and rising income growth. The labor market has already started on a positive note, and others will follow it in the same manner.
Insights On The Matter:
The inputs were shared by the Economic & Strategic Research (ESR) Group, which is owned by FNMA. The growth of labor market is considered as one of the key factors to enhance consumer confidence. If the consumer is confident, then he would like to spend more than what he does normally, which will enhance the manufacturing activities across the country. It is a known fact that an economy can only grow stronger if its manufacturing activities increase. FNMA’s inputs relate employment sector, labor empowerment and increment in the manufacturing activities together, which are sole factors for a strong economy and developed country.
The overall growth of US economy in 2014 was around 2.5%. The country is expected to witness slightly higher growth rate of 2.9% in the current year. FNMA claims that U.S. dollar has been growing stronger in the international market for the past one year. If it continues to grow in the same way, then total credit deficit of the country will come down significantly. Not only will it empower economy, but also elevate its position in the global market.
The Chief Economist of FNMA Doug Duncan says that the U.S. economy will grow at 2.9% in the current year, which is slightly less than what FNMA predicted earlier. Overall it is a good recovery and solid performance. The current scenario suggests that USA will witness an improved consumer spending throughout the year, which will prove to be a massive boost for the coming years.