Nomura’s economic outlook for 2011 projects GDP growth of 2.5% for the year. But where exactly is that growth coming from?
The breakdown of that growth is interesting, in that it shows continued weakness in housing, but new weakness in inventories and government spending.
These projections were published December 6, and there has been a bump as a result of the tax deal.
The bank’s chief U.S. economist, David Resler says the tax deal “averted a calamity,” and prevented GDP from falling in 2011. Resler says the bank feels the U.S. economy will grow at 2.8% (the 2010 rate) next year, according to Daily Finance.
The main GDP beneficiary of the tax cut is likely to be consumption spending.
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