The National Association for Business Economics is predicting that the economy will rebound in 2009 – but not before continuing to struggle in the short term.
NABE President-elect Chris Varvares said that if current economic conditions do not undergo a rapid recovery, prospects could decline further.
"Still, the NABE panel expects that lower oil prices, a bottoming out in home prices, and a better functioning of financial markets should enable the economy to resume trend-like growth by the second half of 2009," he added.
Meanwhile, the economy is showing few signs of recovery in the short term. The Bureau of Economic Analysis reported that the gross domestic product had decreased at an annual rate of 0.3 percent during the third quarter of 2008, down from a second quarter increase of 2.8 percent.
Varvares added that NABE economists "see virtually no economic growth in the fourth quarter" and predicted that the GDP would only grow by 1.3 percent in the first quarter of 2009, but would reach 3 percent by the end of 2009.
He also notes that two out of three economists believe that a recession has already begun or will be underway by the end of 2008.