US GDP to grow by 1.8% in 2016 - NAB

Tony Kelly, Senior Economist at NAB, notes that the U.S. GDP growth slowed in the March quarter to 0.1% qoq (0.5% annualised), with softer consumption growth, and business investment and net trade again detracting from growth.

Key Quotes

“We expect GDP growth of 1.8% in 2016 (previously 2.2%) and 2.1% in 2017 (previously 2.3%). The downward revisions include a lower expected productivity growth trend going forward and, as a result, we have lowered our expectation of the peak federal funds rate for this cycle to 2.5%.”