Economic predictions for the next decade are filing in, as we near the midpoint of the 2010s. The US economy has gone through a lot over the past decade: market booms followed by recession and high unemployment rates and, more recently, a mild growth. As some industries are beginning to recover and others continue to spiral downwards, more and more changes are expected in the following year.
Following, we would like to present you with a list we have compiled of the top 5 economic predictions for the next decade. These predictions are based on forecasts made by economic analysts, banks, and other experts in the field.
Curious to see how the US economy will change over the next ten years? Let’s take a look at the countdown.
Note: please take the following predictions as being just that – predictions – and not certainties.
No. 5: The decline of the dollar will continue
We’re getting the bad economic predictions for the next decade out of the way first. While the dollar has had a somewhat shifty evolution, with a few spikes and a lot more down, experts believe that the US currency will continue to slowly decline in value.
Currently, the pressure put on the dollar, in part due to the Government debt and it part due to the lowering of interest rates enacted by the Federal Reserve, will continue to force the currency to go down. Nonetheless, the decline is expected to be slow and no collapses are predicted.
No. 4: The US economy will be less affected by ground wars
Largely thanks to the debt amassed by the US Government, it is unlikely that the administration will involve itself in any future ground wars. The security spending enacted thus far are one of the main culprits for the deficit and it is believed that the Government will work on shrinking down this expenditures.
No. 3: The unemployment rate will drop
Probably the most significant economic prediction for the next decade regards the current US unemployment rate. While this rate has already slowly decreased since the recession, experts believe that it will continue to drop significantly over the next decade.
For 2014, the US Bureau of Labor predicts a general unemployment rate of 7.1 percent. By 2023, this rate is believed to drop to 5.3 percent. Others seem to believe that the decrease will be even more pronounced. Federal Reserve board members predicted earlier this year that the unemployment rate will drop to 6.2 percent by 2015.
No. 2: Economic growth, while mild, will be constant
Following the low economic growth rates of 1.9 percent and 1.4 percent in 2012 and 2013 respectively, we should see a small increase in the percentage in the years to come. Based on the predictions of the Congressional Budget Office, economic growth should situate itself at around 3.4 percent in 2014 and remain somewhat constant in the years following.
No. 1: A reduction of the Federal Debt
We’ve arrived at the top spot on our lit of to economic predictions for the next decade. While the reduction of the massive Governmental debt has caused numerous debates thus far, measures have been set into motion to start reducing it over the span of the following years. Currently, there is much uncertainty whether the measures will involve spending cuts, tax hikes, or other austerity measures.
While this will also translate into a slower economic growth, it feels like Washington is finally starting to take care of this lingering and ever-rising Federal debt. It will take years, but by the end of the following decade, the current debt, which is estimated at $17 trillion, should be much lower than what it is today.
If you liked our economic predictions for the next decade, you’ll love our “Top 4 Predictions for Your Business Plan in 2014.”
