JPMorgan lifts U.S. GDP growth outlook after budget deal

Construction cranes are seen in downtown Los Angeles
Construction cranes are seen in downtown Los Angeles, California, U.S., May 22, 2017. REUTERS/Lucy Nicholson

February 9, 2018

NEW YORK (Reuters) – J.P. Morgan on Friday raised its outlook on U.S. economic growth in 2018 and 2019 in the wake of a wide-ranging deal that will increase federal government spending and its budget deficit to the area of $1 trillion a year.

Michael Feroli, an economist at the largest U.S. bank by assets <JPM.N>, said in a research note that gross domestic product would grow by 2.6 percent in 2018, up from a prior estimate of 2.2 percent, while U.S. GDP in 2019 would expand by 1.9 percent versus a previous projection of 1.6 percent.

(Reporting by Richard LeongEditing by Chizu Nomiyama)