Delay or failure to implement the Trans-Pacific Partnership (TPP) trade deal could cost US exporters around $94bn, which also suggests global headwinds are likely to continue to weigh on US growth in the near future.
The 2016 'Economic Report of the President', written by the Council of Economic Advisers, and sent by President Obama to Congress this week, outlines the importance of the TPP for the US economy, which authors predict will grow by 2.7 per cent in 2016, 2.5 per cent in 2017, and 2.4 per cent in 2018.
The President’s report, however, warns of headwinds from a global slowdown that could put pressure on US exports. Opinion of both, the 2016 World Bank Global Economic Prospects and the IMF report that the GDP growth in low-income countries (LICs) fell to between 4.8 per cent and 5.1 per cent in 2015. Between one-half and two-thirds of LICs are commodity exporters. The commodity price decline is taking a toll on public finances, current account balances, and economic growth in these countries, making them more vulnerable to both domestic challenges and external shocks such as global financial turbulence.
This slower growth around the globe, however, has had spillovers to the US economy, the report explains.