The acceleration in economic activity, under way since the middle of 2003, and the continuation of rapid growth in 2004 and 2005 are based on the recouping off of an initial situation of production below capacity. The estimates of potential GDP growth in the United States for the next five years range between 3.2 and 3.5 per cent annually, depending on the source.
All in all these are prudent forecasts, taking into account the productivity gains that have been achieved in the last three years, the growth of the population, the country’s endowment of human capital and the heavy investment in technology and information systems. Productivity performance is in a sense the key to an economy’s strength.