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Economists Forecast Subdued Growth in 2012

Wall Street Journal (05/14/12) Phil Izzo

Economists surveyed by the Wall Street Journal say the economy likely will grow so slowly this year that the unemployment rate will largely be unaffected. The economists predict slow but steady growth and say the economy should add about 185,000 jobs a month over the next year. The jobless rate—at 8.1% in April—will likely end the year at 7.9%. A third of the economists believe political inaction is the biggest risk to growth. “If business anticipates a fiscal shock, investment and hiring may slow later this year,” says Lou Crandall of Wrightson ICAP.