The University of Central Florida Institute for Economic Competitiveness has just released its economic forecast for the U.S. economy and its not pretty.
The U.S. economy lost momentum in the first half of 2011, but real GDP growth should accelerate to 3.3 percent in the 3rd quarter and ease to 2.8 percent growth in the 4th quarter, says Dr. Sean Snaith, national expert in economics, forecasting and economic analysis and principal author of the report.
Several other highlights of the report include:
- In 2012, real GDP growth should average 2.4 percent.
- Consumers still face a wealth problem, particularly the loss of home equity. Home equity remains at the same level witnessed at the nadir of the financial crisis. For most consumers, their nest eggs have gone from Ostrich sized to Robin.
- Payroll employment growth remains sluggish. Persistent policy uncertainty is a black cloud over the private sector and consequently firms will be slow to hire new workers.
- Unemployment rates have ticked up in recent months and 2011 should end with unemployment still way too high at 8.8 percent. Unemployment rates will continue to fall very gradually in 2012 and decline to 7.2 percent y the end of 2014.
Read the full forecast of Dr. Snaith Snaith HERE.
