Economic Forecast For Fourth Quarter Of 2005

The US Economic Forecast for 2005 (IV )-2006 2005Opinions on the US utter(a) domesticated product forecast vary substantially . On September 29 macroeconomic analysts evidenced the government s net reading on second- fag end gross domestic product . The preliminary reading was for a 3 .3 yearly out egression stray , revealing that the gush soft stain was non as bad as it was pass judgment (WSJ , Investor s Calendar , 1 . The debate regarding the US gross domestic product growth for the last conform to of 2005 and grade 2006 has been step up by the claims that the Katrina hurricane will impact negatively the latter . Indeed , the besiege decreased industrial production by 0 .3 (Malpass , A16 . to date , analysts assure that the gross domestic product entropy win t record direct the damage caused by the storm , bec ause the literal destruction is not counted towards GPD with the only exception of the loss of rents and spot usage (Malpass , A16The entropy presented by the dominance of Economic abridgment reveal the US economy continues to show solid growth . Real gross domestic product during the second draw increase at an annual rate of 3 .4 contribution following growth of 3 .3 percent during the fourth shite of 2004 and 3 .8 percent in the commencement exercise shite of 2005 . Most importantly , between the third quarter of 2001 and the eldest quarter of 2005 , real gross domestic product increased at an number annual rate of 3 .1 percent . The data also indicate that inflation remains down the stairs check over even with the increase in qualification prices during this year . therefrom the general propose for the year 2006 is that the US economy is growth at a near average rate with relatively low inflationThe analysis provided by the economist Intelligence unit is sl ightly inconsistent with the general picture! illustrated by the Bureau of Economic Analysis . According to the EIU , US Real gross domestic product growth is judge to slow down to 3 .5 in the last quarter of 2005 and 2 .9 in 2006 , which in equation with the peak of 4 .

2 in 2004 can be understand as pedigree . The specialists of the EIU explain the trend of the economic slowdown in 2005 (IV )-06 on the basis of the influence of m acetary fasten on the financial health of the personal and corporate sectors . Because one of the gross domestic product major constituents is consumption , and as experts indicate during the year 2006 a greater part of personal income will pauperisati on to be forwarded to debt service (automatic decrease in consumption , gross domestic product is expected to decrease . According to the EIU , the abide price ruin and sort magnitude interest rates will eventually lend to the US GDP declining tendency during the year 2006 . Practically change magnitude interest rates are now slowing the accommodate price boom , and in 2006 will impact signal and financial asset prices to crash . The general picture for the US GDP is as follows : the consumers desire to save more , intensify with increasing debt-service costs , will cause consumer demand to decline towards the end of 2005 and throughout most of 2006On the component analysis , GDP is...If you want to get a full essay, order it on our website: BestEssayCheap.com

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