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

Ukraine Purges Interior Ministry Leadership With Pro-Russian Ties

Interior Minister Avakov says 91 people 'in positions of leadership' have been fired, including 8 generals found to have links to past pro-Moscow governments More

US Airlines Point to Additional Problems of any Ebola Travel Ban

Airline officials note that even under travel ban, they may not be able to determine where passenger set out from, as there are no direct flights from Liberia, Guinea or Sierra Leone More

Nigerian President to Seek Another Term

Goodluck Jonathan has faced intense criticism for failing to stop Boko Haram militants More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid

World Currencies

EUR
USD
0.7893
JPY
USD
107.68
GBP
USD
0.6238
CAD
USD
1.1214
INR
USD
61.185

Rates may not be current.