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Written by admin on August 4th, 2008

Economists Predict Feeble Growth

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Current events in America have largely revolved around the stuttering Economy. While the worst of it was seen in the early parts of 2008, with the mortgage industry running straight into an enormous crisis and the automakers cutting jobs, the issues have managed to subside a bit while other sectors, such as health and service-related jobs, have managed to grow despite the alarming issues of those aforementioned industries.

Because of the fact that certain industries have seen progress in spite of other sectors struggling to survive, economists have generally anticipated a strong return and a healthy rebound for the second half of 2008. However, by the looks of things, this economic turnaround looks to be lethargic at best, with the last two quarters of the year arriving with a fizzle instead of a bang.

Looking towards particular aspects of the economy, economists and financial experts are attributing the lack of strength to the high costs of energy, such as gasoline, and the aftermath of the mortgage crisis, the housing slump, and the credit crunch. In regards to these dilemmas that are facing the economy, forecasters are hesitant to say anything else about the circumstances and are generally approaching the situation with caution. They recognize that while the outlook may be quite slow and cumbersome, it won’t be anywhere close to being desperate.

Approximately 32% of all forecasters believe that the growth of the nation’s economy will sit somewhere between 1% and 2%, which is quite plodding by all standards. The more optimistic analysts are very much in the minority, with only 11% believing that growth will come in around 2% and 3%. Out of all the experts, only 1% are pressing the notion that growth will surpass the 3% margin.

Looking at the past 12 months, the economy slowed down considerably around the end of 2007 and stayed in a hard rut for the first several months of this year. The Economic Stimulus Package seemed to have helped things somewhat for consumer spending, but the report for the second half has yet to be released. Economists aren’t very optimistic about it, however, but things aren’t nearly as bad as what they once were.

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