NABE: Expect GDP Growth Levels to Continue

hamilton-zanze September 12, 2013

Economists expect the U.S. to continue its economic recovery and growth driven by increasing employment and low levels of inflation. The improving economy could provide incentive for the Federal Reserve to reduce its purchases of Treasury bills and mortgage bonds, which currently total $85 billion each month. According to a National Association of Business Economics (NABE) survey of 43 top economists, 80% expect the Fed pullback will occur by next year and 43% think it could happen as soon as this year.

The economists also expect annual GDP growth of 2.3% for Q3 2013 and 2.6% for Q4, both down slightly from earlier expectations. Second quarter annual GDP growth came in at 2.5%. The U.S. economy has not seen year-over-year growth hit 3% since 2005.