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Monday, July 16, 2018

Explained Snippets: The American growth story, amid slowdown elsewhere

Economists have raised their growth estimates for the second quarter to an annualised rate of nearly 5%, more than double the pace of the previous period.

By: Express News Service | New Delhi | Updated: June 22, 2018 8:46:37 am
Donald Trump Trump, who has made a tough stance on immigration a major goal of his presidency, responded sharply to critics. (AP)

As President Donald Trump contemplates more tariffs and takes an increasingly confrontational approach with China, Canada, Mexico and other trading partners including India, the one thing that strengthens his hand is the fact that the American economy is accelerating, and is on course to expand this year at the fastest rate in more than a decade. This, as growth slows in Europe, China, Japan and in several other major economies, potentially gives Trump greater leverage to force concessions out of these countries.

Economists have raised their growth estimates for the second quarter to an annualised rate of nearly 5%, more than double the pace of the previous period. Some economists say the figure could hit 3% for the full year, a level last reached in 2005.

In July, the recovery will reach the nine-year mark, making it one of the longest in modern history. And consumer spending has rebounded after a soft start to the year, with retail sales in May rising by a robust 0.8%, double what analysts had forecast.

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The Accelerating US economy

After a slow start in the first three months of the year, the US economy is expected to grow at nearly 5% in the second quarter thanks in part to a rebound in consumer spending.

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IIM course fees: From Rs 14 lakh in Indore to Rs 21 lakh in Ahmedabad

At six of the older IIMs, fees range between Rs 14 lakh and Rs 21 lakh for a two-year postgraduate management course. On Thursday, The Indian Express reported that the older IIMs are learnt to have expressed their concerns to the government about a clause in the proposed rules under the IIM Act, under which the government expects the IIM board to fix fees commensurate with expenditure, maintenance and expansion plans. Education at the older IIMs is not subsidised by the government. Of the seven older IIMs, IIM-Shillong is not part of this fee comparison.

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