USA: What are the economic prospects in an election year?

In 2024, the United States is immersed in a decisive electoral process, with presidential elections scheduled for November. Current President Biden is running for re-election, which adds an element of continuity or change to the country’s economic outlook.

The economic landscape of the United States in this election year is presented as a central and critical issue, especially given the political and social context in which the election is taking place.

Our general assessment of the US economy is that indicators currently show that the economy is in a strong position based on the following indicators:

1. Unemployment rate. 3.8%

2. The inflation rate is 3.2% annually.

It was expected that the economy would enter a recession due to the increase in interest rates that we witnessed. Over the following months, there was talk of the possibility of a “soft landing,” an English term for a soft landing. However, there was no recession and the decline was quite uneventful.

It is expected that by the end of this year, interest rates will begin to decline, and this will contribute to generating greater economic activity and allowing the economy to continue growth. Therefore, the economic outlook for 2024 remains positive.

Sectors with growth potential

Historically, elections in the United States have had a marginal impact on the economy, which depends not exclusively on those in the White House, but primarily on growth opportunities in new economic sectors.

In this sense, the next sector of potential growth in the US economy could come from the AI ​​side as the US has been a leader in producing this technology.

Another sector that could be affected by the election results and the occupation of the White House is the energy sector. The United States has been a leader in producing various forms of energy and is supporting the growth of the electric vehicle sector. In this sense, political parties show significant differences, and depending on who the next president is, the push toward these new energy production systems will be determined.

On the other hand, the real estate sector in the United States continues to grow. Expectations this year that interest rates will fall will help the sector. In terms of demand, the real estate sector both nationally and internationally continues to receive great attention. Finally, there is such a large housing deficit that the need to build new homes will be a priority for the next administration.

Having a stable economy and a stable currency; The fact that the world currency is still the dollar helps attract capital from all over the world, not just from Latin America. In addition, the legal security it provides in the United States gives any investor peace of mind to be able to make their investments.

Immigration may be the difficult issue a foreign investor faces with the change of party in the White House. There may be changes to the US immigration system that may affect you. However, capital is always welcome and the possibility of obtaining visas for investors with capital will not change.