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Shoppers carry bags of purchased merchandise at the King of Prussia Mall, United States’ largest retail shopping space, in King of Prussia, Pennsylvania, U.S., December 8, 2018. REUTERS/Mark Makela/File Photo
LONDON, July 16 (Reuters) – The U.S. economy has moved past the peak in growth and inflation, BofA said on Friday, as it cut its gross domestic product (GDP) forecast for this year.
In a note, the bank said it has tweaked its forecasts to reflect recent data and now looks for real GDP growth of 6.5% this year versus 7% previously.
“Economic growth has started to moderate but importantly we think the economy will settle on a growth trajectory that is still more than double the pace of the pre-pandemic rate, surprising many to the upside,” BofA economists said in a note.
They said they still expect 5.5% growth next year.
Reporting by Dhara Ranasinghe, editing by Karin Strohecker
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