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U.S. Economy Won’t Grow More Than 2.5% Even by Q4 2014: Expert

Moneycontrol.com (09/27/13) Bart Van Ark

Continued high unemployment rates and lackluster investment could prevent the U.S. economy from growing faster than 2.5% by the fourth quarter of 2014, says Bart Van Ark, executive vice president and chief economist at the Conference Board. Although the unemployment rate dropped in August, Van Ark says the decline was tied to a decrease in the labor force participation rate rather than the addition of more jobs.

He calls the fact that people are leaving the labor force “a major concern going forward.” He notes that economic growth could be hampered in the near future by a possible government shutdown and the debt ceiling debate.