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Economists Sees Growth Accelerating Later in Year - Essay Example

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The following paper under the title 'Economists Sees Growth Accelerating Later in Year' gives detailed information about the results of a survey which conducted by The Wall Street Journal among 56 economists about their economic forecasts for the year 2011…
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Economists Sees Growth Accelerating Later in Year
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The political unrest in the Middle East, the earthquake in Japan, and the weak housing market are some of the factors that contributed to the decline in economic growth during the first quarter. Coming from a 3.1% growth in the fourth quarter of 2010, the first-quarter growth rate of gross domestic product declined at 2.7%. Economists, however, maintain a positive outlook on economic recovery.
The unemployment rate which currently stands at 8.8% is predicted to fall to 8.3% in December 2011. This decline in unemployment is attributed to the 200,000 jobs which economists believe will be offered by the government next year. More jobs extend purchasing power that’s why consumer prices are also expected to rise at the end of 2011. Economists predict the inflation rate to register at 2.8% by year-end. The price per barrel of oil, in addition, is estimated to fall under 100 dollars.
Interest rate, meanwhile, is forecasted to increase by the end of 2011. Economists point to decreasing unemployment rate and increasing inflation rate as factors that would likely cause the Federal Reserve to increase the interest rate. Read More
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