Economists paint rosy picture for US

NEW YORK: Economists in the United States have a surprisingly rosy view of the outlook for the economy in months ahead despite stock price tumble, corporate accounting scandals and falling dollar.
In a poll conducted by the Wall Street Journal late June, economists predicted that the economy would continue to grow throughout the year and would not return to recession, a fear that is creeping the financial markets in recent weeks.
The consensus forecast of the 55 economists who completed the survey is for real gross domestic product, the nation''s broadest measure of economic health, predicted to grow at a 3.5 per cent annual rate in the second half of this year and a 3.6 per cent during the first half of next year, adjusted for inflation.
That is slower than is typical in the early stages of an economic recovery, and far slower than the brief 6.1 per cent growth rate recorded during the first quarter of this year.
But it beats the consensus of about 2.5 per cent growth in the quarter just ended. Perhaps more importantly, the prediction of steady second-half growth provides a stark contrast to the gloom that currently pervades the stock, bond and currency markets, the Journal said.