Moody’s Says U.S. Growth Likely Diminished


NEW YORK, Aug. 15 (UPI) — A second rating service has lowered its expectations of the U.S. economy, saying the prospects of a substantial recovery soon have declined.

Moody’s Analytics, which The Wall Street Journal defines as “a sister company to credit-ratings company Moody’s Investors Service,” has lowered its forecast for the real U.S. gross domestic product for 2011 to about 2 percent for July through December, citing the tragic earthquake in Japan and debt problems in the United States and Europe.

Moody’s Analytics said that is not fast enough growth to lower the unemployment rate, which is now 9.1 percent.

Next year, the company predicts, the GDP should grow 3 percent, which is about the pace required to keep the U.S. unemployment rate stable.

The firm said odds of a U.S. recovery that lowers the unemployment rate have “diminished substantially.”

Further, the odds of a double-dip recession, the company said, would increase if stock prices continue to fall.

UPI - United Press International, Inc.

Since 1907, United Press International (UPI) has been a leading provider of critical information to media outlets, businesses, governments and researchers worldwide.

Join the Discussion

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.