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Published on Thursday, June 9, 2016 | Updated on Friday, June 10, 2016

U.S. | In search of potential GDP

Potential GDP growth has slowed to 1.8% as a result of weaker demographics, lower productivity growth & slower capital accum. If current trends do not reverse & policymakers continue kicking the can, potential GDP growth could slow down to 1.2%. However, a rebound in productivity growth & policies to boost working age population could lift potential GDP growth up to 2.7%