News / Economy

World Bank: US Economic Growth Speeding Up

World Bank: US Economic Growth Speeding Upi
|| 0:00:00
...
 
🔇
X
Jim Randle
January 15, 2014 10:57 PM
Many economists say U. S. growth will speed up a bit over the next year. Surging energy production is cutting costs and spurring U. S. economic growth, but rising interest rates are acting as brakes on expansion. VOA’s Jim Randle reports.
Many economists say U. S. growth will speed up a bit over the next year, which will likely make it easier for other nations to sell their products in the world’s biggest economy.  Surging energy production is cutting costs and spurring U. S. economic growth, but rising interest rates are acting as brakes on expansion. 

Some shops are busier, because for the first time in five years, the United States and other wealthy nations are shaking off the recession and making a larger contribution to global growth.
 
That is the word from a new World Bank report, which also says growth will be helped by fewer cuts in government spending over the next year.   

The bank’s Manager of Global Macroeconomics is Andrew Burns.  

“We are looking at a significant acceleration in the U. S. [economic growth] from about 1.8 percent last year to 2.8 percent this year," said Burns.

Key sectors of the U. S. economy, like housing, are strongly influenced by interest rates.  Lower rates make it easier for families to borrow the money to buy homes and businesses to get the equipment they need to expand.

With that in mind, the U.S. central bank has been working hard to stimulate the economy by cutting interest rates.  Part of that effort involves buying tens of billions of dollars of securities each month, a program that is being reduced or “tapered.”  

If the stimulus continues for too long, it might spark inflation, which could hurt the economy.

Bankrate.com analyst Greg McBride says a slow increase in interest rates will not hurt, if the economy is expanding at the time.

"The likelihood is that long-term interest rates will probably grind slowly higher throughout 2014, while short-term interest rates remain unchanged," said McBride.

A surge in U.S. energy production will help overcome the impact of rising interest rates.  Oil industry experts say growing use of hydraulic fracturing or “fracking” has sharply increased U. S. production of oil and natural gas.

The head of the American Petroleum Institute Jack Gerard,  says the larger supply of natural gas means lower energy prices, and a boost for American manufacturers.  

“If you want to put people to work, if you want to generate revenue, now is the time.  We can do it through the energy equation," said Gerard.

The wider use of fracking is boosting U.S. oil production, cutting the cost of crude oil imports, and leaving consumers with more money to spend on other goods and services.

Critics say burning more fossil fuels may increase climate change and voice concerns about the impact of fracking on the environment and public health.  

Industry spokesmen say the practice is safe, but opponents say some gas wells that use fracking technology have polluted nearby water wells, and they urge more scientific study.

You May Like

Video Obama Announces Plan to Send 3,000 Troops to Liberia in Ebola Fight

At US Centers for Disease Control and Prevention, Obama details troop deployment and other pieces of US plan More

Video China Muslims Work to Change Perceptions After Knife Attacks

Muslims in Kunming say that they condemn the violence, it is not a reflection of the true beliefs of their faith More

Humanitarian Aid, Equipment Blocked in Cameroon

Move is seen as a developing supply crisis in West Africa More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Enviropreneur Seeks to Save the Environment, Empower the Communityi
X
September 16, 2014 2:06 PM
Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video Enviropreneur Seeks to Save the Environment, Empower the Community

Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video West Trades Accusations Over Ransoms

As world leaders try to forge a common response to the threat posed by Islamic State militants in Iraq and Syria, there is simmering tension over differing policies on paying ransoms. In the past month, the jihadist group has beheaded two Americans and one Briton. Both countries refuse to pay ransom money. As Henry Ridgwell reports for VOA from London, there is uncertainty in the approach of some other European nations.
Video

Video Scotland Independence Bid Stokes Global Interest

The people of Scotland are preparing to vote on whether to become independent and break away from the rest of Britain, in a referendum being watched carefully in many other countries. Some see it as a risky experiment; while others hope a successful vote for independence might energize their own separatist demands. Foreign immigrants to Scotland have a front row seat for the vote. VOA’s Henry Ridgwell spoke to some of them in Edinburgh.
Video

Video Washington DC Mural Artists Help Beautify City

Like many cities, Washington has a graffiti problem. Buildings and homes, especially in low-income neighborhoods, are often targets of illegal artwork. But as we hear from VOA’s Julie Taboh, officials in the nation's capital have come up with an innovative program that uses the talents of local artists to beautify the city.
Video

Video US Muslim Leaders Condemn Islamic State

Leaders of America's Muslim community are condemning the violent extremism of the Islamic State group in Iraq and Syria. The U.S. Muslim leaders say militants are exploiting their faith in a failed effort to justify violent extremism. VOA correspondent Meredith Buel reports.
Video

Video Americans' Reaction Mixed on Obama Strategy for Islamic State Militants

President Barack Obama’s televised speech on how the United States plans to “degrade and destroy” the group known as the Islamic State reached a prime-time audience of millions. And it came as Americans appear more willing to embrace a bolder, tougher approach to foreign policy. VOA producer Katherine Gypson and reporter Jeff Seldin have this report from Washington.
Video

Video Authorities Allege LA Fashion Industry-Cartel Ties

U.S. officials say they have broken up crime rings that funneled tens of millions of dollars from Mexican drug cartels through fashion businesses in Los Angeles. Mike O'Sullivan reports that authorities announced nine arrests, as 1,000 law enforcement agents fanned out through the city on Wednesday.
Video

Video Bedouin Woman Runs Successful Business in Palestinian City

A Bedouin woman is breaking social taboos by running a successful vacation resort in the Palestinian town of Jericho. Bedouins are a sub-group of Arabs known for their semi-nomadic lifestyle. Zlatica Hoke says the resort in the West Bank's Jordan Valley is a model of success for women in the region.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7722
JPY
USD
107.08
GBP
USD
0.6171
CAD
USD
1.1041
INR
USD
61.075

Rates may not be current.