Archives - Economics: Page 21
Author: amparo enriquez (Sun Jan 08, 2006 1:06 am)
Title: The Economy in 2006
The economy is looking good for this year of 2006. The increase of 6 to 9 percent in capital spending, a rise in exports (due mostly to a weaker dollar against the Euro and the Yen), and also the large sales increase of Boeing abroad are among the reasons the economy is pointing up. On the other hand fast inventory depletion since July should motivated retailers and wholesalers to restock their warehouses, what will bring about an increase in factory orders.
States should have this year budget surpluses and smaller deficits what will trigger more public spending and bring about growth.
In spite of the uplifting news government should still find a way to reduce the twin deficits which still represent a challenge to our economy.
Thus far, the economy has enjoyed a healthy 4% growth rate. While a slowdown is predicted in the coming months, we may finally see the light at the end of the tunnel where rising interest rates are concerned. While GDP growth may slow, our economy will undoubtedly bounce back as it always does. My attention is on the cooling of the real estate market and what it will mean to our economy in the coming years.