A group of economists is predicting a strong acceleration in America’s GDP growth.
The National Association for Business Economists believes the economy is starting to pick up. Based on the findings of 35 of its members, it is forecasting a 4.5% annualized GDP increase in the third quarter of 2003, then 4% in the fourth – the first two-quarter run of growth over 4% since 1999.
For 2003 as a whole, the NABE predicts a 2.6% GDP rise, followed by a 4% climb next year – the highest increase since 1999. It also believes the recovery will finally be strong enough to create jobs.
“After wallowing like a dismasted sloop in a storm-tossed sea … the US economy finally appears to have hoisted its sails,” observed Duncan Meldrum, president-elect of NABE and chief economist at Air Products and Chemicals.
The Association attributed the upturn to the stimulus of tax cuts and low interest rates, as well as a long-awaited increase in business investment.
Data sourced from: USA Today; additional content by WARC staff