Tags: Economists | Europe | US | Growth

Economists: Europe to Dampen US Growth in 2012

Monday, 31 Oct 2011 07:44 AM

European leaders may have worked out a deal to cut in half what Greece owes private creditors, but the crisis isn't over, and debt issues in Europe will continue to dampen the U.S. economy in 2012, according to a USA Today poll.

The poll of 43 economists does find that most see less risk of a new recession although growth will remain sluggish.

Uncertainty "will impact the confidence of business leaders and consumers," dampening business investment and hiring, says Bernard Baumohl, chief global economist of the Economic Outlook Group, USA Today reports.
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Sixty-one percent say Europe's financial troubles will dampen then entire global economy in 2012, the poll finds.

Still other economists, like Hugh Johnson, head of Hugh Johnson Advisors, say improving consumer spending bodes well for the U.S. economy.

"The numbers have gotten better," Johnson says.

The Commerce Department says U.S. gross domestic product grew 2.5 percent, fueled in part by a slight but much welcome gain in consumer spending.

Other experts say, however, that the economy is not gaining enough steam to make a serious dent in high unemployment rates, which are hovering around current levels of 9.1 percent.

"We are looking at very disappointing growth over the next year. It will be far short of what is needed to get businesses to hire more aggressively," says Mark Zandi, chief economist at Moody's Analytics, according to the Associated Press.

"How the economy performs next year will depend heavily on what policymakers here and in Europe do in coming weeks," Zandi adds.

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European leaders may have worked out a deal to cut in half what Greece owes private creditors, but the crisis isn't over, and debt issues in Europe will continue to dampen the U.S. economy in 2012, according to a USA Today poll. The poll of 43 economists does find that...
Economists,Europe,US,Growth
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2011-44-31
Monday, 31 Oct 2011 07:44 AM
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