Economist Mohamed El Erian attributes the strength of the US economy to its attraction of foreign capital and large-scale investments in productivity drivers, competitiveness, and growth. Despite global and national political upheavals, the US economy has remained resilient, outperforming other major economies.
El Erian expects the US economy to continue outperforming peers in 2025, citing significant investments in future growth drivers. However, he also warns that political and geopolitical challenges pose a risk to the US economy’s exceptionalism. El Erian forecasts a somewhat lower immediate growth rate with sticky inflation.
The IMF has revised its forecast for US growth in 2025, projecting a 2.2% growth rate. Goldman Sachs Research predicts strong global economic growth in 2025, with the US leading the way. El Erian’s prediction aligns with his earlier warning about US Treasury yields potentially hitting 5% in 2025.
The resilience of the US economy is evident despite challenges from Europe and China. El Erian attributes this to the country’s ability to attract foreign capital and invest in future growth drivers. The US economy is expected to pull further ahead, with El Erian warning that political and geopolitical upheaval poses a risk to its exceptionalism.
Source: https://www.benzinga.com/24/12/42679657/el-erian-explains-why-us-economy-is-likely-to-continue-outperforming-other-major-economies-in-2025