SECOND HALF OF 2016 ECONOMIC GROWTH OUTLOOK FORESHADOW FOLLOWING BREXIT UNCERTAINTY

The second half of the year is proving not to be any different from previous months. With an earlier 2% prediction, the economic growth outlook remained unchanged. This is according to the July 2016 Economic and Housing Outlook by Fannie Mae’s (FNMA/OTC) Economic & Strategic Research (ESR) Group. However, businesses are expected to face turbulence resulting from the poor production, profit deduction, and high labor costs. All these are effects of the U.S general elections and Brexit uncertainties. Also contributing to the lag of economic growth are net exports, inventory, and nonresidential investment.