Predictions for 2014 are dominating the Internet now that Christmas is over. What does the new year have in store for everyone? According to a published report by CS Monitor Dec. 26 several factors influencing the economy will take place in the coming new year.
Economic growth U.S. gross domestic product (GDP) grew at a slow pace in 2013. When all was said and done, it was about 1.9 percent. Economists have made predictions for 2014 for that number to increase by one point. Housing and consumer spending should rise could make it 2.6 or 2.7 GDP growth. What does this mean exactly? Economists say that means lower oil prices improved international growth, higher household net worth, and less fiscal drag.
Unemployment rate falls close to 6.5 percent
The unemployment rate is anticipated to fall near 6.5 percent -- or as low as 6.3 percent. "The Fed took its first step toward trimming its monetary stimulus efforts, cutting back on bond purchases by $10 billion," the report said.
Stock market stalls at the beginning, but annual returns will be good
The stock market is expected to stall early, but annual returns will still be positive. In the money predictions for 2014, stocks will be higher, but it will be a "modest" year. Overseas expansion and the position of corporations is the reason behind a more positive stock market forecast.
Inflation remains low
A significant number of analysts predict inflation to stay around or under 2 percent. This is especially true if energy prices remain "stable."
Housing market trends near normal
The U.S. housing market will continue to make its way back to how it was before the crash. The report stated that prices and sales are inching near pre-bubble levels. Mortgage rates will keep rising. A 30-year fixed mortgage is predicted to reach 5 percent for the first time since 2010. Housing inventory will continue to grow, foreclosures and late mortgage payments will go down. The strongest sectors of the economy are expected to be "housing, autos, and manufacturing."
It appears these predictions for 2014 regarding the economy and money is good. Will they prove true throughout next year?