The August 2018 Wall Street Journal Economic Forecast Survey was published on August 9, 2018. The headline is “Growth Seen Hitting 3% in 2018, but Risks to Outlook Mount After This Year.”
I found numerous items to be notable – although I don’t necessarily agree with them – both within the article and in the “Economist Q&A” section.
The average forecast for growth in 2019 was 2.4%, little changed in recent months. By 2020, the average forecaster projects economic growth will slow to 1.8%. That is down from estimates earlier this year of 2%.
Trump administration officials disagree with these projections. The White House has said 3% growth or better can be sustained. Other government forecasters, including the Federal Reserve, Congressional Budget Office and International Monetary Fund all project a slowdown from the growth rate of 2018. The Fed, for example, sees 2% growth in 2020 and 1.8% growth in the long run.
As seen in the “Recession Probability” section, the average response as to the odds of another recession starting within the next 12 months was 18.3%. The individual estimates, of those who responded, ranged from 1% to 50%. For reference, the average response in July’s survey was 17.71%.
As stated in the article, the survey’s respondents were 57 academic, financial and business economists. Not every economist answered every question. The survey was conducted August 3 – August 7, 2018.
The current average forecasts among economists polled include the following:
full-year 2018: 3.0%
full-year 2019: 2.4%
full-year 2020: 1.8%
December 2018: 3.7%
December 2019: 3.6%
December 2020: 3.9%
10-Year Treasury Yield:
December 2018: 3.17%
December 2019: 3.46%
December 2020: 3.50%
Please Note – The above is excerpted from the EconomicGreenfield.com (published by RevSD, LLC) post of August 10, 2018, titled “The August 2018 Wall Street Journal Economic Forecast Survey”
RevSD, LLC offers the above commentary for informational purposes only, and does not necessarily agree with the views expressed by these outside parties.
RevSD, LLC is a management consulting firm and strategic advisory that focuses on the analysis of current and future weak(ening) economic conditions, and offers businesses and other entities advice, strategies, and actionable methods on how to optimally adapt to such challenging, complex conditions.