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July 11, 2007

Next year's economy

With 2007 half over, N.C. State University economist Mike Walden looks ahead to the economy in 2008.

"A lot can happen, so people should take these forecasts very, very tentatively," says Dr. Walden, a professor of agricultural and resource economics. "But as things stand now most economists -- and, of course, all economists do not agree -- but most economists see a fairly good economy in 2008.

"We see continued economic growth, actually a little better than what we have been seeing recently. We see a slightly lower trade deficit, complements of the lower-valued dollar," he adds. "We see inflation not too different than what it is today –- maybe the overall inflation rate around 2.5 percent.

"However, interest rates we do see higher -- maybe another quarter-percent higher than where they are today.

"And perhaps what matters most," Walden concludes, "the average person will see their after-tax and after-inflation income rise in 2008 by around 3 percent."

Posted by deeshore at July 11, 2007 08:00 AM