Even with lower-than-projected growth for the first half of 2017, and an uncertain political climate, Fannie Mae’s Economic & Strategic Research Group still feels that the U.S. economy is poised to grow roughly 2% by the end of the year.
The group cited improved consumer spending, business investments, and residential investments as the main factors for this potential growth, which was outlined in their August 2017 Economic and Housing Outlook.
According to the forecast, the economy grew at an annualized rate of 1.9% during the first two quarters of 2017 – slightly under Fannie’s 2.1% projection. However, the GSE feels that both a buildup in residential inventory as well as the continuation of investments in nonresidential structures (especially as oil prices stabilize) will lead the U.S. economy to this 2.1% threshold by the end of the year.
That all being said, Fannie Mae did acknowledge that the economy could still experience some setbacks before the year is over due to potential policy changes in Washington and a possible government shutdown.
For more information, check out the full forecast here.