President-elect Donald Trump vowed economic plans some of which are the cutting of tax and more than $500 billion of infrastructure spending.
The accelerating growth in the U.S. especially in the commodities sector was included in the World Bank’s outlook for the world economy in 2017 which was released on Tuesday.
The World Bank predicts that the economic growth in the United States would rise up to 2.2 percent. However, if Trump’s stimulus plans are fully implemented, it could lift the GDP growth to 2.5 percent this year and to around 2.9 percent in 2018.
The World Banks says developments in the U.S. economy, the world’s largest, have effects far beyond its shores and business cycles have been highly synchronized between the U.S., other advanced economies, and emerging markets.
Stronger U.S. growth would help global activity by raising U.S. demand for trading partners’ exports. A 1 percent increase in U.S. growth could boost growth after one year by 0.8 percent in other advanced economies, and by 0.6 percent in emerging economies.
The rise of large emerging markets such as China and India has lessened the impact of the U.S. on commodity markets over time.
However, according to the World Bank, the U.S. is still the largest consumer of natural gas and oil, accounting for more than one-fifth of global consumption. The country is also the second largest consumer of a wide range of commodities including aluminum, copper and lead.
While the bank expects faster expansion in the U.S., commodity-importing emerging market and developing economies, in contrast, should grow at 5.6 percent this year, unchanged from 2016.