The U.S. economy is expected to expand at a robust rate of 1% for the first time this year, according to the latest forecasts from the Bureau of Labor Statistics.
The robust expansion will be fueled by a rebound in energy prices, which have plummeted nearly 90% since last year, and the economy’s potential for a second consecutive year of job growth, according the BLS.
The economy will also be boosted by the continued strength of consumer spending.
Economists polled by The Wall St. Journal forecast that the economy would grow by a robust 3.6% in 2016, a more than 50% boost from 2015.
Analysts at RBC Capital Markets said in a note to clients on Tuesday that the robust growth would be driven by the continuing strength of U.s. consumer spending, which is up by about 3% this year.
economy grew by about 2% in 2015.
Economies worldwide have been jittery about the prospect of further economic growth.
The Fed’s monetary stimulus package was announced in September, which has since failed to boost growth.
Inflation in the U.k. has hit record highs.
China, Russia and India are also among the world’s major economies.
Economist at Morgan Stanley Robert Hall, who tracks U.seas growth, said that the stronger growth in the US and other advanced economies would likely boost U. s. inflation as well as the U s. dollar, which could help boost exports.
“The big takeaway from this report is that the U is still a very resilient and stable economy, but the underlying fundamentals of growth are much better than they have been in the past few years,” he said in an interview with CNBC.
“In the last six months, the dollar is up, and that’s mostly driven by U. S. exports.
That’s helped offset some of the weakness in the economy.”