WASHINGTON — Business economists are expressing optimism that tax cuts and increased government spending will accelerate economic growth over the next two years.
The latest survey by the National Association for Business Economics projects that the economy will grow 2.9 percent this year. That would be the best performance in three years, up from the NABE’s forecast of three months ago, which envisioned 2.5 percent growth this year.
Since the NABE’s previous forecast, President Donald Trump pushed a $1.5 trillion tax cut through Congress, and lawmakers reached a deal to raise spending for the military and domestic programs by $300 billion over two years.
Collectively, the NABE forecasters think the tax cut and spending increase will add 0.45 percentage point to growth this year and 0.3 percentage point in 2019.