U.S. Economy Improvements Expected For 2014
Published March 31st, 2014
It's no secret that the economies of not just the United States but of countries all over the world have seen better times in recent years. Since the financial crisis that started in 2006 and 2007, countries all over the world have gone bankrupt and millions of people in North America alone have lost their homes to the foreclosure process. Millions all over the United States have also been without jobs for months (and in extreme cases) years at a time. Things are looking up, however, as a United Nations report that was recently released has suggested that the economy of the United States and the economies of countries elsewhere are expected to dramatically improve in both 2014 and beyond.
The caveat to this positive information comes in the fact that U.S. monetary policy still has the potential to derail emerging economies. If the aforementioned monetary policy doesn't do any unnecessary damage, however, global economic growth is expected to speed up in the next two years. The United Nations is predicting that global and U.S. economic growth will be three percent in 2014 and the slightly higher 3.3 percent in 2015. For the sake of comparison, global economic growth was only 2.1 percent in all of 2013.
Though these single digit numbers may not seem impressive, they certainly are when you consider where the economy is coming from. United Nations economists have continued to warn, however, that emerging nations have a large amount at stake if the Federal Reserve in the United States stops buying the $85 billion dollars in bonds per month that it has been for the last few years.
One of the major reasons that the U.S. economy is expected to improve in 2014 has to do with the fact that retail sales are also expected to improve around the same time. The National Retail Federation, which is a group of experts based out of Washington, predicts that sales of retail products in the United States will rise to $3.24 trillion dollars in 2014. This represents a 4.1 percent increase over the amount of money spend in 2013. It is also a 3.6 percent increase over the last ten years, making 2014 one of the best years in recent memory. Despite the fact that the 2013 holiday season was particularly trying for many retailers, sales are still expected to improve as the economy improves. The entire situation becomes something of a self-fulfilling prophecy. As the economy improves, retail sales naturally improve at the same time. As retail sales continue to improve and consumers back into big businesses are funneling more money, the economy improves along with their bottom lines.