Goodbye Recession?
Three out of four U.S. economists say they are bidding the recession farewell by the second half of 2009.
This was disclosed in a survey conducted by the National Association for Business Economics (NABE) among a panel of 45 economists who produced forecasts about the U.S. economy.
The report says that while the economy has shown signs of stability, there will be a moderate recovery seeing growth by the second half of 2009. The body however, is expecting a decline in second-quarter economic activity.
Among the predictions made by economists on growth indicators include:
GDP will have a modest rebound in the second half of 2009 by 1.2%.
Modest gains in employment are expected in 2010 after a loss of 4.5 million jobs in 2009.
Government spending is the only expenditure expected to balloon in 2009.
Home sales will drop by the middle of 2009. Home prices are predicted to rise 1% in 2010.
Reduced consumer spending and increase in personal savings is seen. Americans are expected to stay thrifty until the next five years.
Obtaining credit will be risky and difficult to get. The credit crunch has been eased because of action from the Federal Reserve.
More than half of the economists predicted potential growth of 2% to 2.5% over the next five years.
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