The American Gross Domestic Product growth level was slow in recent years, and this situation has been worrisome for many. However, there may be a more significant boost in 2014.
GDP growth in the United States should jump to 2.9 percent this year, which would be slightly better than in 2013, when it was 2.6 percent, according to a report from Fannie Mae. Much of this would be due to the gains in labor, as well as the spending levels from both consumers and businesses.
Another major factor could be from the housing market, the report explained. This would be likely due to the burgeoning consumer spending level.
“Our full-year 2014 economic forecast accounts for three key growth drivers: an acceleration in spending activity from private sector forces, waning fiscal drag from the federal government, and continued improvement in the housing market,” said Doug Duncan, chief economist for Fannie Mae. “Much of the policy uncertainty we saw in 2013 has cleared to some degree, which raises the possibility for a pick-up in growth as consumers and businesses, who held back on their spending amid those policy concerns, might loosen their purse strings this year.”
Duncan explained further in the report that consumer spending may jump to 2 percentage points of the total GDP growth this year, which would be notably higher than the 1.6 percentage points recorded in 2013.
Commercial market may play a role
Improvements in GDP in the United States involve many aspects, and the commercial real estate market is also a major player. According to a report from Jones Lang LaSalle’s City Momentum Index, San Francisco is the top commercial market in the world for market momentum and socio-economic reasons, while New York City ranks sixth.
“City momentum is about far more than just raw GDP growth,” said Jeremy Kelly, director of global research for JLL. “The true foundation of highly dynamic cities emerges from such factors as speed of innovation and creation of cutting-edge businesses along with new building construction, property price movement and investment in real estate from cross-border investors and corporations.”
San Francisco also finished first in the technology-rich cities category, the report explained. The remainder of the top five also were in the U.S., with Austin, San Jose, Boston and Seattle being named.