US economic growth is expected to reach 3.1 percent in 2018 and remain above 3 percent through 2020, according to President Donald Trump’s Council of Economic advisers at the White House. The growth figures in 2017 would have even beaten the forecasts, something unprecedented since the presidency of Ronald Reagan in the 1980s.
Although the likely increase in inflation leaves some risk on the steady rise of financial markets since 2009, the figures announced by the Trump administration contradict the Federal Reserve (Fed) which expects long-term growth of about 1.8 percent. Also, many analysts are concerned about the increase in public debt encouraged by Trump’s economic policy which ambitions to launch large infrastructure projects for about one trillion and a half dollars in federal funds for 200 billion and the rest in investment.
For most economic players, however, entrepreneurs in particular, confidence flies at record levels and Trump seems more appreciated than what the polls say. The White House forecast also confirms the general good health of the global economy, which is particularly marked by the take-off of Europe’s economic growth. The “new mediocre” announced in 2014 by Christine Lagarde, Managing Director of the International Monetary Fund (IMF), seems no longer relevant.