Why 2014 May Be the Year the Economy Bounces Back

Why 2014 May Be the Year the Economy Bounces Back

The official end of the Great Recession is a few years behind us now, but Americans still aren't feeling as flush as they did before the downturn. Companies are dragging their feet when it comes to job creation, economic growth is slow and unemployment remains higher than any of us would like.

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However, due to a combination of factors across different sectors, a growing number of economists are predicting that 2014 could be the year the U.S. economy really gains some momentum, CNN Money reports.

Rising Home Prices

The number of Americans who owe more on their homes than the homes themselves are worth is declining, and prices are going up. These increases are leading, in turn, to higher net worths and consumer confidence.

Resolution of Business 'Uncertainties'

Businesses have been hesitant to bring on more people due to uncertainty about how new policy—specifically, the Affordable Care Act and Dodd–Frank Act—will affect them.

Just how these laws will be implemented will become more clear next year. John Silvia, chief economist at Wells Fargo, told CNN Money, "Dodd-Frank and Obamacare need to be worked out, then employment takes off."

RELATED: What the Supreme Court Ruling on Obamacare Means for You

Millennials Grow Up

2014 also marks the year when Millennials will start to purchase cars and homes. These "American Dream" milestones will further jump-start the economy.

The Numbers

Estimates of just how good things could get vary. Steve Blitz, chief economist at ITG Investment Research, predicts that GDP growth could approach 4% in 2014. Over at Merrill Lynch, economists aren't quite as confident, putting projected economic growth at around 2.7%. Growth is dependent on a number of factors, including the unemployment rate and the state of the global economy.

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