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January 03, 2007

Economic Outlook for 2007

It’s that time again when we ask economists to blow the dust off their crystal ball and tell the rest of us what the economy will be like in 2007. N.C. State University's Mike Walden says most predict continued economic growth in the coming year.

"This is hard for economists to do. We are much better at predicting the past, I always tell my audiences, but seriously most economists … see the economy continuing to grow in 2007 -- perhaps modestly but enough growth to create jobs and to grow income," says Dr. Walden, a North Carolina Cooperative Extension specialist.

"Inflation we expect will be moderate, and we don’t expect any surprises in energy prices, although of course the weather can definitely change that," he adds.

"I think the biggest change -- perhaps the biggest surprise in 2007 -- for people will be interest rates. We do look -- most economists do look -- for interest rates to fall in 2007, not much but we definitely expect them to trend downward.

"Also, I think, in terms of timing the economy may start out very slow in 2007 but should pick up steam as the year proceeds," he concludes.

Posted by deeshore at January 3, 2007 08:00 AM