Financial Economists & Analysts Point Out Important 2018 Economic Indicators

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Economic growth in the United States has been on a general upward tick for several years. Many people have long been claiming that a recession – however mild or severe – is long overdue. As time continues to pass, some financial analysts point to the increased likelihood of a downward turn in 2018.

Nevertheless, there are many indicators for 2018 that suggest a mixed bag of news. Whether you are planning on pursuing a career in economics, wanting to safeguard investments, or merely want to shore up your position in the job market, it’s important to know what to expect. Let’s review what financial analysts are saying 2018 has in store for us.

Overall GDP Growth: Steady

One of the biggest forecasting factors – simple GDP growth – isn’t forecast to change all that much in the upcoming year. In the United States, the national economy is expected to grow by between 1.7 and 2.5 percent, putting it right in the middle of both 2016 and 2017’s economic growth numbers.

However, it is worth noting that financial analysts have cut growth figures in recent months; a recent report in July released by the IMF lowered GDP growth by roughly one-quarter of a percentage point over previous estimates. Because GDP growth is broad-based, its effects on the economy can be very encompassing and yet hard to feel in any one industry or niche.

Educational Influences

With each passing year, more and more skilled laborers enter the workforce. 2018 is poised to be a record-setting year in this regard, with online educational institutions fueling the pursuit of degrees in financial economics, chemistry, health-related fields, and dozens of other industries.

According to the Online Learning Consortium, one in four college students are currently enrolled in one or more online classes. Analysts are expecting this number to reach 30% in 2018, as the cost of brick-and-mortar institutions continues to increase rapidly; an online MFE program is much cheaper than a traditional master’s degree.

Inflation and Commodities

Two additionally important factors in economic health are inflation rates and commodities prices.

Even in an economy that is growing, high inflation rates can completely wipe out the benefits normally earned through such conditions. Fortunately, inflation has been under control in the US for some time and will continue to remain that way in 2018. As the Federal Reserve plans to increase interest rates toward the end of the year, a small increase in inflation may occur, but it is expected to remain within the two-percent ball park for 2018.

Commodities, on the other hand, have been clearly on a downward trend thanks to a recovering economy. Items such as oil and gold will in all likelihood remain reasonably priced in 2018, according to leading financial analysts. According to those with masters in financial economics and those working for top-tier firms, these items tend to decline when the economy is in strong shape. This is yet another good indicator for a stable economic climate heading into 2018.

All in all, 2018’s economic forecast according to analysts and economists appears to be on the right track. This dynamic will help provide further stability to markets and ensure that everything from job hunts to the stock market remains in a solid position for the next year.

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Student @ Advanced Digital Sciences Center, Singapore. Travelled to 30+ countries, passion for basketball.