Business Economists Dial Back Growth Expectations for Next Year

Business economists downgraded their expectations for GDP growth next year to 2.7 percent, but most expect the Federal Reserve to start raising interest rates this December.

That’s according to a National Association for Business Economics survey of 50 professional forecasters. Back in June, the panel had projected a GDP growth rate of 2.9 percent next year.

They expect the economy will grow 2.5 percent this year.

The strong dollar and China’s economic slowdown are holding back the economy, while lower crude oil prices and monetary policy easing in Europe and Japan are having a positive effect, economists say. U.S. exports will grow by less than 2 percent this year, they predict.

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