Private investment in the United States is expected to increase in near future. Scarcity in labor supply causes the wage rate to increase. Hence, investment will increase in order to replace capital for labor. This in turn, will improve the productivity of the economy as well.
At the same time, the housing market is expected to rebound due to existing lower interest rate higher employment in this sector.
"We expect GDP growth to continue in the range 2.25%-2.50% in the coming years mainly driven by domestic demand as net exports continue to be a drag on the economy due to the strong USD", says Danske Bank in a research note.


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