US economy is reviving and could log annual growth rates of 3 per cent through the next decade, according to President Donald Trump’s first official economic report to Congress.
The White House Council of Economic Advisers (CEA) projects economic growth will increase to 3.1 percent in 2018, remaining above 3 percent through 2020 and adding a cumulative $1.1 trillion to the economy.
“The headline in the economic report is that we’re not in a new normal of low growth, but we’re just in a normal period again where we can go back to growing about 3 percent that we always expected,” said CEA Chairman Kevin Hassett.
The CEA on Wednesday released its annual economic report which praises the effects of the tax cuts and tax overhaul signed into law by Trump last December.
It says President Donald Trump’s policies on regulations and infrastructure if enacted would lead to 3 percent annual GDP growth.
The report says Trump’s “pro-growth” policy agenda “have inspired enormous confidence in the economy and optimism that it will continue thriving.”
Hassete said the Trump administration’s cutting of corporate tax rate to 21 per cent from 35 per cent would spur more corporate investment in software, machinery and other equipment. That investment, in turn, should boost productivity and enable a faster expansion, according to him.
On trade, the report says the administration’s focus on improving trade agreements will benefit American businesses and American workers across a variety of sectors—in particular, the
U.S. energy and agriculture sectors possess comparative advantages and may be able to increase their exports to the rest of the world.