US economy poised for gains in 2014

The US economic growth is on track to accelerate this year as headwinds recede and underlying momentum picks up, the White House said in a report.

The economy continued to recover and strengthen in 2013, nearly five years after the worst of financial crisis, Xinhua cited from the Latest Economic Report of the President Monday.

The unemployment rate fell 1.2 percentage point in 2013, a larger decline than in previous years and more than was forecast by most private-sector economists, according to the report prepared by the White House Council of Economic Advisors.

"The most predictable reason for optimism about the US economy in 2014 is the waning drag from fiscal policy and reduced fiscal uncertainty," the report said.

A wide variety of indicators such as a rebounding housing sector and strong gains in aggregate household net worth suggest the economy is well situated for a pickup in growth in 2014, it noted.

Real GDP is projected to grow in the 3.2 - 3.4 percent range during the four years through 2017. And by the fourth quarter of 2017, the unemployment rate which currently stands at 6.7 percent, is expected to fall to 5.5 percent.

The White House economists said severe cold weather and storms in the US and a global reduction in asset prices have contributed to some economic activity falling below trend rates of growth in the last few months.

The Economic Report of the President is an annual report issued by the White House Council of Economic Advisors.