5 Nov 2013
Flash: USD buoyed by better GDP prospects in 2014? - BAML
FXstreet.com (London) - Marcus Huie, analyst at Bank of America Merrill Lynch suggested US fiscal tightening could decelerate in 2014.
Key Quotes:
“In 2013, the US underwent the largest fiscal tightening among the major advanced economies, with the structural fiscal balance narrowing by 2.4% of GDP, according to the IMF”.
“Despite the tightening, the US managed to stay out of recession, buoyed by an easier monetary policy and underlying momentum”.
“In 2014, the fiscal tightening is anticipated to decelerate substantially, with a narrowing in the structural fiscal balance by only 0.7% of GDP. This inflection point of 1.7% of GDP should add substantially to prospects for US growth in early 2014”.
Key Quotes:
“In 2013, the US underwent the largest fiscal tightening among the major advanced economies, with the structural fiscal balance narrowing by 2.4% of GDP, according to the IMF”.
“Despite the tightening, the US managed to stay out of recession, buoyed by an easier monetary policy and underlying momentum”.
“In 2014, the fiscal tightening is anticipated to decelerate substantially, with a narrowing in the structural fiscal balance by only 0.7% of GDP. This inflection point of 1.7% of GDP should add substantially to prospects for US growth in early 2014”.