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Showing posts with the label Macroeconomics

U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook

📉 U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook As 2025 unfolds, the U.S. economy is showing signs of strain amid a global slowdown and heightened trade barriers. Here's a detailed look at the latest forecasts and implications based on insights from the OECD, Federal Reserve, and key market indicators . 📊 1. U.S. Growth Forecast Downgraded by OECD The Organisation for Economic Co-operation and Development (OECD) has revised the U.S. GDP growth forecast for 2025 to 1.6% , down from 2.8% in 2024 . The forecast for 2026 remains muted at 1.5% , reflecting persistent uncertainty driven by: Elevated trade barriers Reduced consumer spending power Sluggish business investment 💸 2. Tariffs Fueling Inflation & Trade Costs The average U.S. tariff rate has climbed to 15.4% , the highest level since 1938 . These tariffs have raised import costs, which are now being passed on to consumers: Projected consumer price inflation is expected to rise to...

Navigating the Macro World: A Beginner's Guide to Macroeconomics

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Are you curious about the forces that shape entire economies? Have you ever wondered how governments manage to steer national finances or why prices sometimes seem to rise uncontrollably? If so, welcome to the fascinating world of macroeconomics! In this blog post, we'll embark on a journey to explore the fundamental concepts of macroeconomics and understand why it matters in our everyday lives. What is Macroeconomics? Macroeconomics is the branch of economics that deals with the performance, structure, and behavior of an economy as a whole. Unlike microeconomics, which focuses on individual markets and economic agents like households and firms, macroeconomics zooms out to examine the broader picture. The Big Questions At its core, macroeconomics seeks to answer some of the most pressing questions about the economy: How do we measure the overall health of an economy? What causes fluctuations in economic activity, such as booms and recessions? How can governments and central banks i...