Tags: WSJ | Poll | Economy | Gain | Steam | 2011

WSJ Poll: Economy to Gain Steam in 2011

Monday, 13 Dec 2010 09:19 AM

The economy is poised to pick up its pace as the year ends and will gain even more steam in 2011, according to a Wall Street Journal poll of 55 economists.

The economists polled say gross domestic product will grow 2.6 percent in the fourth quarter of this year, up from a 2.4 percent growth prediction from last month.

The economy will expand 3 percent next year, the economists predict.

Meanwhile, the poll found that the odds of a double-dip recession are down to 15 percent, the lowest average forecast of the year.

Most economists add there is a good chance the economy will even outperform their current forecasts.

While overall economic indicators have been encouraging, the extension of the Bush-era tax cuts as well as reduced payroll taxes are really fueling optimism.

"We have been anticipating the renewal of Bush tax cuts but not the possibility of payroll tax cuts," says Maury Harris of UBS.

Today, bosses are raising wages, car dealerships are selling more autos and holiday shopping is picking up, leading many to predict the economy is finally becoming more robust and not just showing signs of life.

"The upward momentum has more traction this time," James O'Sullivan, chief economist at MF Global, tells the Associated Press.

Nevertheless, unemployment rates remain high.

The U.S. economy added a net total of 39,000 jobs in November, according to official data, which is not enough to bring overall unemployment figures down.

Unemployment rates rose to 9.8 percent in November from 9.6 percent in October and is expected to stay above 9 percent through 2011.

Lower unemployment rates are key to a long-lasting economic recovery, experts say.

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The economy is poised to pick up its pace as the year ends and will gain even more steam in 2011, according to a Wall Street Journal poll of 55 economists. The economists polled say gross domestic product will grow 2.6 percent in the fourth quarter of this year, up from a...
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2010-19-13
Monday, 13 Dec 2010 09:19 AM
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