The US economy could grow at a slower pace next year, due to reduced stimulus by tax cuts and increases in Federal Reserve interest rates (Fed. ), among others, predicted economists.
A group of 10 economists forecast an economic growth of 2.4 for the US in 2019, and some predict a recession for 2020, according to a CNBC survey published on Wednesday.
Economists said that the previous positive momentum of tax cuts is expected to fade in the coming months, which in turn could hurt the growth of corporate profits and, to some extent, reduce economic growth.
In a more pessimistic view, Goldman Sachs said on Sunday that US GDP growth will fall to less than 2 percent in the second half of 2019, while the Fed continues to raise interest rates and the effects of debt cuts. taxes fade. JP Morgan economists expect the US economy to grow at a rate of 1.9 percent in 2019.
The US economy grew at an annual rate of 3.5 percent in the third quarter and 4.2 percent in the second quarter of this year, according to the Bureau of Economic Statistics.
The Federal Reserve raised its benchmark interest rate for the third time this year in September, and also predicted another possible rate hike in December. Last week, Atlanta Fed President Raphael Bostic said the federal funds rate "is not far away" from being neutral.