US economic will experience soft landing this year while consumers spending up
Saturday, March 31 2007 @ 05:29 PM MSD
In Washington- Last Thursday, the head of the IMF said that the US economic momentum has great chances of sliding down this year to a pace that is slower than 2.9 percent forecast in the month of September by the International Monetary Fund.
Rodrigo Rato said that the problems plaguing the US residential housing market together with the issues regarding the mortgage foreclosures could have an impact on the US consumer spending. In addition to his statements he said strong household earnings and a healthy labor market would offset the negative effects.
Rato predicted that the U.S. economy should experience a soft landing this year and in the year 2008 will soon recover.
While in Washington the Commerce Department said last Thursday that the economy expanded at around 2.5 percent pace in the last quarter of the previous year of 2006. However the revisions for the gross domestic product rose to a 2.2 percent.
The latest data results mean that the growth for the full year of 2006 was 3.3 percent, which had remain unchanged since last month.