Laurence D. Fink, chief executive officer of BlackRock Inc., said the U.S. will trail the global economy for much of the next decade.
The U.S. economy will grow 2 percent to 3 percent for the next five to ten years, lagging behind global growth of 3 percent to 5 percent, Fink said today in a Bloomberg Television interview with Erik Schatzker from the Morningstar conference in Chicago.
“We will have modest growth for five to 10 years,” Fink, who heads the world’s largest asset manager, said in the interview. "If we cut our deficits, I may be wrong, and they might be lower," he said, referring to the U.S. growth numbers.
A series of reports suggests the world’s largest economy is decelerating. Manufacturing grew at its slowest pace in more than a year in May, consumer spending rose less than forecast in April, and the unemployment rate unexpectedly climbed to 9.1 percent in May. Fink said as recently as January that he didn’t believe the U.S. would enter a prolonged period of below-average growth.
“We were always talking about a U.S. economy growing 3 plus percent,” he said on a Jan. 25 conference call. “We never believed in the ‘new normal,’ ” he said then, referring to a term used by rival asset manager Pacific Investment Management Co. to describe the declining role of the U.S. in the global economy following the credit crisis.
Economists surveyed by Bloomberg expect the U.S. economy to grow 2.6 percent this year and 3 percent in each of the next two years. The economy grew 1.8 percent in the first quarter, down from 3.1 percent in the fourth quarter of 2010.
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