Slow growth, low inflation, and higher unemployment are expected next year, according to participants in the Federal Reserve Bank of Chicago’s 22d annual Economic Outlook Symposium.
This year, 26 individuals provided forecasts, which led to a forecast of 0.7% growth in real gross domestic product next year after 0.2% growth this year. This would mark the slowest two-year growth for the economy since the 1981-82 period, the Fed said. Personal consumption expenditures are seen growing at the same level.
Unemployment is predicted to be 6.7% at the end of 2008 and 7.8% by the end of next year. The consumer price index, which is used as the measure of inflation, is forecast as up 4.5% this year and 2.0% in the coming year.