Morgan Stanley has raised its economic growth forecast for the United States, citing the positive impact of President Biden’s Infrastructure Investment and Jobs Act.
The investment bank now projects 1.9% gross domestic product (GDP) growth for the first half of 2023, up from its previous forecast of 0.5%. It also raised its forecast for GDP growth in the fourth quarter of 2023 to 1.3% from 0.6%.
The upward revision was driven by stronger-than-expected economic data in the first half of the year, as well as the positive impact of the Biden administration’s infrastructure bill.
The Infrastructure Investment and Jobs Act, which was signed into law in November 2021, provides $1.2 trillion in funding for a variety of infrastructure projects, including roads, bridges, airports, and broadband internet.
The bill is already having a positive impact on the economy, as evidenced by increased manufacturing activity and job growth.
However, there are still risks to the economic outlook, including rising inflation and the potential for a recession.
While Morgan Stanley is more optimistic about the near-term outlook, it remains cautious about the longer-term risks.
The Biden administration has been touting the economic benefits of the Infrastructure Investment and Jobs Act, arguing that it will create jobs and boost economic growth.
Republicans, however, have criticized the bill, arguing that it is too expensive and will lead to higher taxes.
The latest economic data suggests that the U.S. economy is on track to grow at a healthy pace in the near term. However, the risks to the outlook remain, and it is too early to say whether the Biden administration’s economic policies will be successful in the long term.
Here are some of the key takeaways from the article:
- Morgan Stanley has raised its economic growth forecast for the United States, citing the positive impact of President Biden’s Infrastructure Investment and Jobs Act.
- The investment bank now projects 1.9% gross domestic product (GDP) growth for the first half of 2023, up from its previous forecast of 0.5%.
- It also raised its forecast for GDP growth in the fourth quarter of 2023 to 1.3% from 0.6%.
- The Biden administration has been touting the economic benefits of the Infrastructure Investment and Jobs Act, arguing that it will create jobs and boost economic growth.
- Republicans, however, have criticized the bill, arguing that it is too expensive and will lead to higher taxes.
- The latest economic data suggests that the U.S. economy is on track to grow at a healthy pace in the near term. However, the risks to the outlook remain, and it is too early to say whether the Biden administration’s economic policies will be successful in the long term.
