It is crystal clear that the US economy is one of the strongest in the world. Economically speaking, it is far ahead of Europe and Asia and everything points in the direction of the fact that this will continue to be the case for the foreseeable future.

The US central bank's response to the arrival of the Great Recession of 2008-2009 has been seemingly been the most appropriate. As we all know the Federal Reserve decided to flood the financial system with cheap cash, also known as quantitative easing.

The resilience of the US economy is remarkable in the eyes of Didier Saint-Georges, head of the investment committee of Carmignac Gestion, and important for worldwide growth. The relatively strong growth of the US has been an opportunity for other regions already.

Can The Growth Of The US Economy Speed Up?

Despite an adjustment to the upside of the official forecast of GDP growth in the third quarter, the seemingly strong recovery has shown multiple signs of weakness that make it less likely for growth to speed up, says Saint-Georges.

The Future growth of US consumption will now be limited by different unwanted factors: stagnation of real income, the fact that the ratio of disposable income and consumer loans has reached a high point already, rising food prices, rising rent, low interest rates…

Next to that the growth potential of investments will be tempered because the utilization of production capacity is already dropping after a very cautious increase and gross margins are under attack. The idea of Carmignac Gestion is not to break down the US economy prematurely, but to simply point out the risks so that investors will not be disappointed.