CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

U.S. economy to expand 3.3 percent in 2011: NABE survey

03-01-2011 10:51 BJT

WASHINGTON, Feb. 28 (Xinhua) -- U.S. real gross domestic product (GDP) is expected to grow faster than previously estimated as demand from consumers, businesses and other countries picks up, according to a survey released Monday by U.S. National Association for Business Economics (NABE).

The NABE said that U.S. economy would grow 3.3 percent year-on- year in 2011, up from the previous prediction of 2.6 percent in last November. The economy growth in 2012 is expected to edge up to 3.4 percent.

"Factors supporting growth going forward include pent-up consumer and business demand, strong growth in foreign economies, especially those in Asia, and accommodative monetary policy. Factors restraining growth include financial headwinds, uncertainty about future federal government economic policies, a tepid housing market, and sustained high unemployment," said NABE President Richard Wobbekind.

"Panelists do remain confident about the expansion's durability, but are concerned about high levels of government deficits and debt, excessive unemployment, and rising commodity prices."

The consumer spending will expand 3.2 percent this year, up from the previous forecast of 2.4 percent; business investment in equipment and software will grow 12.1 percent; export growth this year would exceed import growth rising 8.6 percent, according to the survey.

However, the NABE said that housing market would lag behind the rest of the economy. Most respondents said home prices would only increase 0.4 percent.

Moreover, respondents also forecast that the U.S. federal deficit would widen to 1.4 trillion dollars this year.

Because of persistently high unemployment and low inflation, the NABE pushed back its forecast for the Fed's first increase in its benchmark interest rate to the first quarter of 2012.

With respect to inflation, the economists expected the consumer price index excluding food and energy costs to increase only 1.2 percent in 2011.

This survey covered forecasts from a panel of 47 professional forecasters, conducted between Jan. 25 and Feb. 9. The National Association for Business Economics, founded in 1959, is the professional organization for people who use economics in their work.

Editor:Xiong Qu |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program