Economy - What's Next

Economic recovery outlook improves after government shutdown Economic recovery outlook improves after government shutdown

By Jim Puzzanghera
December 9, 2013, 7:36 a.m.

WASHINGTON — Business economists expect the recovery to accelerate at the end of the year and into 2014 as politicians are likely to avoid another government shutdown.

The economy still faces challenges, the National Assn. for Business Economists said Monday. But most participants in the group’s quarterly survey expect there will be enough growth for the Federal Reserve to start reducing a key stimulus program in the first half of next year.

The economy will grow 2.1% this year, up from a September forecast of 1.9%, the economists said. Growth will increase to a 2.8% annual rate next year, down slightly from the September median projection of 3%.

The forecast was compiled last month. On Friday, the Labor Department said that the unemployment rate had fallen to a five-year low of 7% in November amid surprisingly robust job growth of 203,000.

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