Wednesday, August 28, 2019

Write an evaluation of a published macroeconomic forecast Essay

Write an evaluation of a published macroeconomic forecast - Essay Example This means that there is continuous growth in future, which is brought by the banks’ new advances made on the credits extended to customers. In the next quarter the economy is expected to perform even much better. Another contributor to the economic growth is the housing for the last more than 5 months, sales of real estates hasbeen evident. This is backed by the new modern homes that have been constructed and some which are still under construction. For example, CoreLogic Home Price Index rose by 1.1% in a year. This is according to chapter three of the (economic forecast publication r April 2014). In comparison, the housing construction and sales vary by 9%, construction rate being higher than the sales. This is a growth indicator. Manufacturing and processing sectors have added wonderful growth indicators to the economic growth. The May returns of this year are anticipated to be the highest for the last three years. This follows last years 5% growth, which is highest for the last three years now. Key assumptions here are that: the government does not take care of the borrowers where the cost of loans is very high. The government assumes that there is general growth. They don’t take care of the private sectors and individuals who bear the high cost of economic growth through coast of loans. The second assumption is the policy of selling the homes. It is more beneficial to hold investments than sales, especially real estates. This is in regard to the principle of the investment multiplier concept. The audience of this information is the potential investors, shareholders and the government agencies. Some areas have been exaggerated. Firstly, the sales of assets are lower in long term growth in GDP. Anothe r one is the high cost of loans shifted to borrowers. The borrowers are economically affected. Labor market shows a negative image compared to developments as said earlier in the US economic

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