Economic Advisory Council Report – May 27, 2016
The U.S. economy started off on a down note in 2016, with gross domestic product (GDP) growth slowing to a paltry 0.4%, even as the financial and commodity markets have continued their wild ride. The global commodity glut and the slowing world economy are the proximate drivers of the weak numbers.
The good news is that these shocks have already inflicted their maximum damage on the U.S. economy, and core drivers of growth, such as consumer spending, are more than strong enough to push the economy through these problems. As such, most economic forecasters continue to forecast growth in the 2% to 2.5% range for the rest of the year.