If US achieves expected strong economy in 2015, it could edge out China in absolute growth

The U.S. could account for a larger share of nominal gross-domestic-product growth in 2015 than China, according to Bob Doll, Nuveen Asset Management’s chief equity strategist. Doll sees the U.S. eking out the victory in 2015, increasing GDP by $840 billion to China’s $810 billion

Growth from the two goliaths is likely to dwarf the contribution from everyone else. Under Doll’s scenario, the U.S. would contribute 38% of the world’s growth, while China chips in 36%. All of the other countries combined would account for 26%.

What’s more, Doll, who offers these thoughts as just one of 10 predictions for 2015, forecasts that the U.S. could account for more real GDP growth than the emerging-market economies for the first time since 1999.

China is accelerating 300 infrastructure projects valued at 7 trillion yuan ($1.1 trillion) this year as policy makers seek to shore up growth that’s in danger of slipping below 7 percent.

The projects will be funded by the central and local governments, state-owned firms, loans and the private sector, said the people. The investment will be in seven industries including oil and gas pipelines, health, clean energy, transportation and mining, according to the people. They said the NDRC is also studying projects in other industries in case the government needs to provide more support for growth.

SOURCE – Barrons, Bloomberg

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