Economics

U.S. Tax Cuts Seen Giving Modest Growth Boost, Survey Shows

  • Trade protectionism, higher interest rates among the dangers
  • Majority of respondents see business-cycle peak by end of 2019
DBS Bank's Baig on How GOP Tax Plan Impacts Markets
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Fiscal stimulus, including large Republican-backed tax cuts, will deliver a modest boost to the U.S. economy in the next two years, although many economists also expect a recession to start during that time, according to a new survey.

About half of economists say fiscal policy changes will augment U.S. growth by 0.2 to 0.39 percentage point in 2018, according to a survey of 51 forecasters by the National Association for Business Economics conducted Nov. 6-15. About one-fifth project a bigger gain and another fifth see no benefit to growth.