Survey: US Economy Expected to Grow Through 2014
Comstock Images/Thinkstock(NEW YORK) -- The economy is expected to pick up strength between now and the end of 2014, according to the latest outlook survey from the National Association for Business Economics (NABE).
"The panelists are estimating 2.4 percent growth in real GDP (gross domestic product) from the fourth quarter of 2012 to the fourth quarter of 2013 and they suggest an improvement in real GDP growth to 3 percent in 2014," says Dr. Nayantara Hensel, chair of the NABE Outlook Survey Committee.
Hensel says the 49 panelists surveyed are more upbeat about consumer spending, the housing market and unemployment.
"The panelists are predicting an improvement in the unemployment rate for this year and next year, in fact they're suggesting that by the fourth quarter of 2013, the unemployment rate will be at 7.4 percent, by the fourth quarter in 2014 it will be at 6.8 percent," she says.
But they see one area of concern: government spending cuts.
"The panelists suggest an even stronger decline in government spending this year relative to last year, which negatively impact GDP growth," Hensel says.
"The economy only grew about two and a half percent in the first quarter of this year and in large part that was because of the sharp 11 and a half percent drop in military spending," she notes.
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