Economists Forecast U.S. Growth On Upswing In 2011

January 24, 2011

in News

Economists Forecast U.S. Growth On Upswing In 2011

Economists are more optimistic about the recovery than they were just a few months ago, significantly upgrading their forecasts for 2011 as consumers open their wallets. When asked to predict, nine of 10 economists said they’re more optimistic than three months ago, according to a USA TODAY survey of 46 economists conducted Jan. 13-19. They expect the economy to grow at an annual rate of 3.2% to 3.4% each quarter this year. That’s up from quarterly median forecasts of 2.5% to 3.3% in an October survey. “This growth is now becoming self-reinforcing,” says Mark Zandi, chief economist of Moody’s Analytics. “Businesses are going to take their stronger sales and begin to hire more aggressively, generate more income, and we’re off and running.” Zandi expects the economy to grow 4.4% this year. The economists say the more robust growth will help cut the unemployment rate to 9% by year’s end from 9.4% in December. They expect employers to add 200,000 jobs a month by the second half of the year, more than double last year’s rate. [Read this article]

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