The U.S. economy remains robust, with Bank of America economists projecting annualized growth of 2.4% in 2025, surpassing consensus estimates. Despite uncertainties tied to President-elect Donald Trump’s proposed policies, including tariffs, tax cuts, and immigration restrictions, the U.S. is seen as better equipped than other nations to handle potential economic shocks.
Trump's tariff agenda, while inflationary and potentially disruptive, would likely have greater global repercussions than domestic ones, reflecting the U.S. economy's resilience. Key indicators, such as high consumer confidence, strong retail sales, and moderated inflation, highlight the country's economic strength.
Bank of America maintains optimism, predicting that any tariffs implemented will be less severe than campaign promises and that a full-blown trade war can be avoided.
Finsum: We are not seeing the same resilliance around the globe and this could draw additional investments.