NEW YORK, Dec. 10 (Xinhua) -- U.S. real gross domestic product (GDP) growth will accelerate to 2.6 percent in 2014 from 1.7 percent this year, analysts at Bank of America Merrill Lynch Global Research said here Tuesday.
A BETTER YEAR FOR U.S. ECONOMY
"As structural headwinds fade, we expect GDP growth to accelerate from an average 2.2 percent in the last four years to 2.6 percent in 2014 and 3.2 percent in 2015," the analysts predicted during the 2014 Year Ahead Press Conference.
Compared with rather depressing readings in recent years, the coming year is different, with no obvious threat in the near future -- no fiscal cliff, no European debt crisis, said Ethan Harris, co-head of Global Economics Research at Bank of America Merrill Lynch Global Research.
Harris argued that the U.S. economy is finally coming out of "rehab," or its healing process. "The data haven' t turned decisively yet, and we are still feeling some of the aftershocks of tight fiscal policy and the government shutdown, but we are beginning to see improvement in the data. Next year, we are much more bullish on growth," he said.
The analysts predicted that in the second half of 2014, the U.S. economy is expected to expand at a 3-percent rate, driven by the end of fiscal austerity and pent-up demand for capital goods.
Moreover, global economic growth is expected to accelerate from 2.8 percent this year to 3.5 percent in 2014, and 3.8 percent in 2015, they said.
For Europe, a slow growth of 0.8 percent is expected as credit and fiscal policy remains tight, they added.
China' s GDP growth will decline from 7.7 percent in 2013 to 7.6 percent in 2014, but remains highest among the leading emerging market economies, analysts said.
They also see modest rebound for emerging markets in the year ahead, with emerging market GDP expected to rise 4.9 percent in 2014.
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