Filed under: Economy Is the United States headed for a “new normal” — a slow-growth economy that lasts perhaps for as long as a decade? The evidence supporting the “new normal” argument, predicting a future in which the U.S. GDP grows at no more than 2.0% to 2.5% per year, is compelling. That low growth rate would constrain corporate revenue and earnings growth, and stock prices, among other consequences. The U.S. has already registered below-trend GDP growth at this recovery’s start – just 3.5% in Q3, as opposed to the more than 6% GDP growth typically registered in an expansion’s initial stage. Here’s why the slow-growth conditions might continue: Continue reading Seven reasons to expect a slow-growth U.S. economy ahead Seven reasons to expect a slow-growth U.S. economy ahead originally appeared on DailyFinance on Sun, 22 Nov 2009 15:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Seven reasons to expect a slow-growth U.S. economy ahead

Filed under: Economy The U.S. recession is expected to end this quarter, Q3, but what form will the recovery take? If one private survey of economists is accurate, it will be a low-growth recovery. About two-thirds of the Blue Chip Economic Indicators (BCEI) survey of private economists see a U-shaped recovery — one where below-trend GDP growth occurs for several quarters, Reuters reported. Specifically, the economists surveyed see 2.3 percent U.S. GDP growth in 2010, after a 2.6 percent contraction in 2009. Continue reading Economists see a low-growth, U-shaped recovery Economists see a low-growth, U-shaped recovery originally appeared on DailyFinance on Tue, 11 Aug 2009 12:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Economists see a low-growth, U-shaped recovery