The real GDP according to 2005 prices is expected to grow at 3 percent in 2015 according to World Bank forecasts and 3.1 percent according to the IMF forecast. Therefore, modest growth GDP growth is expected in 2015. Inflation is estimated at 1.5 percent and 2.5 percent by different agencies. The unemployment level is also expected to decline below the 6 percent mark. The expected GDP grow will increase general income and improve demand for the company products. This creates a general positive outlook on demand. It is augmented by the decline in unemployment level implying a wider market as more people will have an income to spend. The expected inflation level is low which is positive because the prices of inputs will remain fairly constant hence the price charged to consumers will be fairly stable.
The US Federal Reserve Bank has maintained that it will sustain the interest rate within the range of zero and a quarter percent as it seeks to achieve low unemployment level and a higher GDP growth rate. A low interest rate encourages investments since it is cheaper to borrow consequently creating jobs and increasing the national income. The Federal Reserve Bank policy is likely to improve the GDP growth rate and employment outlook in the U.S.A. The US government has also maintained a deficit budget in the coming fiscal year. It is projected at 474 billion US dollars. The intention is to boost economic growth and hasten recovery. A deficit budget implies that the government increases its expenditure so as to stimulate economic growth by creating employment and creating demand for goods and services through government project. This is likely to improve the GDP growth and employment outlook in the U.S.A.
References
Federal Reserve System. Press Release. 28 January 2015. http://www.federalreserve.gov/newsevents/press/monetary/20150128a.htm. 21 April 2015.
Lapitskiy, Ivan . US Forecast 2013-2015 and up to 2060, Data and Charts. 2015. http://knoema.com/ennihcf/us-unemployment-forecast-2013-2015-and-up-to-2060-data-and-charts. 15 April 2015.
