Friday, January 14, 2011

3.2% GDP Growth Rate in 2011?


I notice that a recent survey of economists shows that the consensus expects 3.2% GDP growth for 2011. This is above many expectations from business and government folks.

Izzo, Phil, 2011. Economists more upbeat about pace of recovery. The Wall Street Journal, Jan. 13.

All economic recessions come to an end. Sooner or later, pent-up demand will get things moving again. The 2008 Financial crisis brought about a particularly deep recession that will have long lasting effects. I do think the extremely high unemployment overhang will dampen growth for some time. An assumed 3.2% GDP growth rate is probably the high end of expectations in my opinion.

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