The U.S. economy will suffer as the slumping housing market eats away at job creation and consumer spending, but the nation should avoid slipping into a recession this year, according to a new economic report...
"We don't see that happening," said Edward Leamer, director and co-author of the forecast released Tuesday. "This is a tough call, but I will be very surprised if this thing actually precipitates into recession."
The forecast anticipates job growth remaining sluggish in 2008, with the U.S. unemployment rate rising to 5.5% by the end of the year. The February rate was 4.8%.
The forecast expects the economy to post gross domestic product growth of about 1.5% this year, rising to about 3% growth in 2009. GDP grew 2.2% in 2007, the weakest showing in five years.
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Weak growth this year, the economy strengthens next.
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