Creditnet News Story
Recovery will remain steady, economists say
Friday, June 18, 2010
By Danielle Robson
A "double-dip" recession is highly unlikely as the economy continues to grow, says a leading council of economic advisors.
The Economic Advisory Committee of the American Bankers Association sees positive signs emerging, pointing to 500,000 new jobs already created this year. The economy will be further bolstered by the estimated 2.5 million jobs that will appear next year, the committee said.
"The economy is moving ahead in a lengthy rehab process and will eventually return to full health and strength," said committee chairman and chief economist of PNC Financial Services Group Stuart Hoffman. "This involves transitioning from monetary and fiscal stimulus to a self-sustaining recovery in the private sector."
A rise in shopping is also crucial to economic growth. The committee estimates that consumers will open up their wallets more, increasing spending by approximately 3 percent in the next couple of years.
Despite the optimistic look ahead, the committee notes that unemployment is still high, making 3 percent growth too small to make a notable difference.
The U.S. economy has been in an economic downturn for years, resulting in large numbers of layoffs, increased consumer debt, and home foreclosures.
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