A survey fo 50 economists via the Blue Chip Economic Indicators report have cut their 2010 & 2011 U.S. GDP forecasts for the third month in a row. Moreover, they high unemployment extending through 2011.
“For all of 2010, real GDP now is forecast to increase 2.7 per cent on a year-to-year basis, 0.2 of a percentage point less than a month ago and 0.6 of a point less than predicted in June,” the survey said.
Its consensus forecast for real GDP growth in 2011 was cut by 0.3 of a percentage point from a month ago to 2.5 per cent.
“Given the depth of the recession, a forecast of roughly trend growth this year and next amounts to a very disappointing pace of recovery, with little progress expected to be made in lowering the unemployment rate,” the forecast said.
There’s slow growth and high U.S. unemployment as far the eye can see. For the global economy, it’s actually not too bad of a situation. As long as the U.S. ekes out growth above 2% then things should move forward. But for the unemployed, tough times are unlikely to abate.