Question

Hopefully everyone has seen the news where th US economy grew 3.2% in the first quarter this year. Many were saying it could not be done again and that 2% was the new normal. Our economy is also growing faster than any other country in the world.

What do you all think of the increasing GDP? Can it continue or will we see slower growth in the future (and why)?

Answer 1

growth of the economy depends on various factors. like the convergence hypothesis of solow states, developed economy are supposed to grow at a much slower rate than the under developed economies so that in the long run countries will converse towards a steady state equilibrium. US is among the most developed nations of the world and thats the reason why us is growing at a slower rate than most of the developing countries like china and india. so in the long run also us is expected to grow at 2-3% per year.