Economists expect real gross domestic product growth to be 1.1% for the rest of 2008 while interest rates will remain at 2%, according to a survey of economists released today by the Securities Industry and Financial Markets Association. State and local government spending will weaken into 2009, the survey found.

Eighteen economists submitted predictions for the major economic indicators and sensed that the economy would experience "subdued" growth in the third and fourth quarters of 2008 as home prices reach bottom. They offered an optimistic outlook for growth beginning in 2009, shrugging off inflation concerns and expressing confidence in the Federal Reserve's decision to keep interest rates low.

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