Wednesday, January 9, 2013

Nouriel Roubini : 2013 will be another Year of very Anemic Economic Growth for America

Nouriel Roubini : "In the long term, I think that the fundamentals of the U.S. are a lot stronger than other advanced countries. In the short run I think we will have another year of very anemic economic growth. Next year we will have barely 1.7% including a modest amount of fiscal drag and lots of tail risk could make it worse in the U.S–bigger fiscal cliff, the eurozone crisis, a Chinese hard landing, maybe tensions will raise oil prices in the Middle East–so the downside scenario is actually having a meaningful probability.""I do believe there is a housing recovery but I think that those that are more optimistic about it are going to be proven wrong next year. Housing can increase say 10% to 15% in real terms of residential investment but at the peak it was 6% of GDP, right now it's only 2% of GDP, so the direct effect on GDP growth is going to be very small." - in Bloomberg Surveillance
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