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Most economists see recovery beginning
(chinadaily.com.cn)
Updated: 2009-10-13 11:46

 

NEW YORK: More than 80 percent of economists believe the US recession is over and an expansion has begun, but they expect the recovery will be slow as worries over unemployment and high federal debt persist.

That consensus comes from leading forecasters in a survey by the National Association for Business Economics released Monday.

"The survey found that the vast majority of business economists believe that the recession has ended but that the economic recovery is likely to be more moderate than those typically experienced following steep declines," said NABE President-elect Lynn Reaser, chief economist at Point Loma Nazarene University.

Forecasters now expect the US economy, as measured by gross domestic product, to advance at a 2.9 percent pace in the second half of the year, after falling for four straight quarters for the first time on records dating to 1947. They expect a 3 percent gain in 2010.

Still, the federal deficit has ballooned and the jobless rate is expected to lag behind, as employers remain cautious.

The unemployment rate rose to 9.8 percent in September from 9.7 percent, the Labor Department said earlier this month, the highest point in 26 years.

Forecasters expect the unemployment rate to continue to rise, to 10 percent in the first quarter of the next year, before edging down to 9.5 percent by the end of 2010.

Worries about unemployment are likely to continue to constrain household spending. Personal consumption spending likely began rising in the second half of this year, but is expected to remain low in 2010. Still, Americans aren't expected to save as much as they have in past decades. The savings rate is expected to be above the 2 percent average of the past four years, but below the 9 percent average in the 1970s and 1980s.

Most economists see recovery beginning

About the broadcaster:

Most economists see recovery beginning

Chantal Anderson is a multimedia journalist at the China Daily Web site. Originally from Seattle, Washington she has found her way around the world doing photo essays in Greece, Mexico and Thailand. She is currently completing a double degree in Journalism and International Studies from the University of Washington.

 

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