Showing posts with label forecasters. Show all posts
Showing posts with label forecasters. Show all posts

Slow growth without surprise forecasters

The annual economic msnbc.com Roundtable economic forecasters were generally accurate for predicting growth slow painful this year. But none were more accurate than the two long-time Panel members. History: Tax reductions clarify perspectives economic still dim

Ethan Harris of BofA Merrill Lynch and Diane Swonk de Mesirow Financial have noted more specific members of the Panel by our measurement, including rates of forecasters depending on the extent to which they predicted four key economic indicators.

In General, panelists have done an excellent job observation in their crystal ball last year, the issues of unemployment and rates of interest, but Swonk and Harris easily exceeded nine other members of our panel this year.

Harris and Swonk predicts there is one year the unemployment rate would end of 2010 at 9.8%, exactly where it is currently. A year ago the rate was 10%, and few of our panelists should much improvement. The consensus among forecasters a year ago is that the rate would fall that slightly at 9.8%, as he did.

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"I think that what happened in the past year is that you have two giant, opposing forces sets which cancelled each other out," said Harris.

The economy has been strengthened in 2010 by fiscal and monetary stimulus mass, but were retained by the troubled housing market, and continues to impact the financial collapse that began in 2008, he said. As the economy has grown much slower that should come off the coast of a deep recession.

Then that economists saw coming, "makers perspective, it was a huge disappointment", Harris said. "The Federal Reserve and Obama administration sought a much better results."

Harris has also successfully provides that the Federal Reserve would leave the federal funds rate night at unprecedented zero to 0.25%, where it has been since December 2008, shortly after the beginning of the financial collapse.

Most of our forecasters, including Swonk, wrongly predicted that the Fed would have begun credit crunch once more per day. But the future, at least half of our forecasters now expect the Fed to leave unchanged short-term rates until the end of 2011.

None of our forecasters predicted the extent of inflation environment extremely low experience last year. Average analysts should a 1.4% gain in price consumption excluding food and energy categories volatile. In fact, other food and energy prices have increased only 0.8 per cent in the last 12 months.

Overall consumer prices have increased by 1.1%, according to government figures released this week.

Swonk and Harris predicts an economy to expand by 2010 at the relatively modest 3% rate year ago, a little higher than most analysts that we surveyed. Now analysts expect the final figures of the GDP by 2010 to show a growth of 2.9%, or 2.8 by Randell Moore of Blue Chip economic indicators.

Here is the complete list of the members of our ninth Roundtable annual and their forecasts for 2011:

Nariman Behravesh, Chief Economist, IHS Global Insight Michael Englund, Chief Economist, Chief economic action Ethan Harris, markets developed economy, BofA Merrill Lynch Jan Hatzius, Chief U.S. economist, Goldman Sachs Ed Leamer, Director, UCLA Anderson forecast Dean Maki, head of the U.S. economy research, Barclays Capital ResearchJoel Naroff, President of the Naroff Economic Advisers David Rosenberg, Chief Economist, Gluskin Sheff, joins the Panel) John Silvia, Chief Economist, Wells Fargo Neal Soss, Chief Economist, credit SuisseDiane Swonk, Chief Economist, Mesirow Financial Lawrence Yun, Chief Economist, National Association of Realtors

? 2010 reprints of msnbc.com


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