Fiscal stimulus to provide short-term boost to growth

After another soft start to the year, US economic growth is now benefitting from an upturn in global activity and a loosening of financial conditions. The weaker dollar should boost export growth, while domestic demand should benefit from low long-term interest rates and a modest fiscal stimulus at the start of next year. As a result, we expect GDP growth to accelerate from 2.1% this year to 2.5% in 2018, although we then anticipate a slowdown to only 1.7% in 2019.