GDP Expectations Rise Due to GOP Tax Plan | NTK Network GDP Expectations Rise Due to GOP Tax Plan

GDP Expectations Rise Due to GOP Tax Plan

Moody's Investors Service predicted that U.S. and world economic growth would increase due to the tax cuts.

By NTK Staff | 02.28.2018 @8:08am
GDP Expectations Rise Due to GOP Tax Plan

Global and U.S. GDP growth are expected to see a tailwind in the wake of the GOP tax plan, according to Moody’s Investor Services. The Hill reported Wednesday that the economic analysis group amended its November predictions favorably in light of the Trump administration’s tax cuts:

The economy is expected to expand at a 2.7 percent pace in 2018, an increase from a November forecast of 2.3 percent, Moody’s Investors Service said on Tuesday in its latest update.

The forecast also expects faster global economic growth, which will peak in 2018, driven by improvement in advanced economies.

The raised projections are still short of what the Trump White House predicts, forecasting 3 percent growth, The Hill wrote. President Trump’s advisers predict that the economy will hit the 3 percent mark in 2018.

The president himself has called for Americans to aim for much higher growth, offering 4, 5, or 6 percent as a possibility.

As for global markets, other countries are benefiting from the GOP efforts to cut taxes as well:

Moody’s predicts that Group of 20 economies, including Japan, Germany, South Korea and Russia, will grow at a 3.4 percent pace this year and 3.2 percent in 2019, up from November’s views of 3.2 percent and 3.1 percent, respectively.

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