Investment Hoom

By Isaac Cohen*

Estimates of economic growth in the United States, during this year’s second quarter, reveal a vigorous performance. For instance, the Federal Reserve Bank of Atlanta estimates 2.8 percent growth on an annualized basis. The International Monetary Fund projects 2.9 percent growth for this year. That is close to the White House growth target of at least 3 percent. http://www.imf.org/en/Publications/CR/Issues/2018/07/03/United-States-2018-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-46048?cid=em-COM-123-37366

The Director of the National Economic Council Lawrence Kudlow, quoted in The Wall Street Journal (07/02/18), said the US economy has “entered an investment boom,” adding “We’re going to get over 4 percent real GDP in the second quarter and it looks like we’ll have a very strong second half of the year.”

Several factors are contributing to what is already the 10th year of the second longest expansion of the US economy. Among them last year’s tax reductions figure prominently and also an increase in exports in April and May.

However, there are clouds in the horizon which make risky to extrapolate single quarter figures. Inflation is moving past the 2 percent central bank objective. Also, the White House decision to imposing tariffs against imports from major trading partners has already undermined business confidence. The Dow Jones Industrial Average lost 4.1 percent over the past three weeks, which pushed down the index 8.8 percent, from the peak of January 26, wiping out the gains of 2017.

*International analyst and consultant, former Director ECLAC Washington. Commentator on economic and financial issues for CNN en Español TV and radio, UNIVISION, TELEMUNDO and other media.

About Ramón Jiménez

Ramón Jiménez, actual Managing Editor de MetroLatinoUSA. Periodista que cubre eventos de las comunidades latinas en Washington D.C., Maryland y Virginia. Graduado de la Escuela de Periodismo de la Universidad del Distrito de Columbia. Galardonado en numerosas ocasiones por parte de la Asociación Nacional de Publicaciones Hispanas (NAHP) y otras organizaciones comunitarias y deportivas de la región metropolitana de esta capital. También premiado en dos ocasiones como Mejor Periodista del Año por la cobertura de la comunidad salvadoreña; premios otorgados por la Oficina de Asuntos Latinos del Alcalde de Washington (OLA) y otras organizaciones. Ha sido miembro del jurado calificador en diferentes concursos literarios, de belleza y talento en la región metropolitana. Ha visitado zonas de desastre en Nicaragua, Honduras y El Salvador e invitado a esos países por organizaciones que asisten a personas de escasos recursos económicos. Antes trabajó en otros medios de prensa de Virginia y Washington, D.C., incluyendo reportajes para una agencia noticiosa mundial.

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