US GDP growth 5% in Q3 2014 and forecast for 3.1% in 2015

Standard and Poor’s bumped up its GDP growth forecast for the USA to 3.1% from 3.0% for 2015 based upon cheap oil.

US stocks are hitting all time highs. The Dow passed 18,000 mark for the first time in history and the S&P 500 set a new intraday record after an unexpectedly strong report on economic growth. The final estimate of the U.S. gross domestic product (GDP) for the third quarter was revised up to a 5 percent annual pace, its quickest in 11 years, on stronger consumer and business spending, easily topping expectations calling for a 4.3 percent pace.

Wells Fargo US GDP forecast

Wells Fargo sees all of the domestic sectors of the US economy are growing again for 2015 and 2016. Wells Fargo sees the US economy expanding between 2.5 and 3% over the next two years.

Europe and Japan stimulus will help most developing countries

“Most developing countries, with the notable exception of China … should also experience stronger growth over the next two years.” These countries will be helped by the type of loose monetary policy the Bank of Japan is implementing and that Wells expects the ECB to undertake.