Despite the US government\u2019s efforts to boost growth a forecast from the UCLA Anderson School of Management said the anticipated “Great Recovery” hasn’t come true and even normal growth is hard to achieve.<\/p>\n
\n The second-quarter UCLA Anderson Forecast released on Wednesday
\n said the growth real GDP is still not enough to help the economy
\n recover from recession, the Associated Press reports.\n<\/p>\n
\n The government\u2019s extreme monetary easing has boosted growth on
\n the US markets this year; however returning to a normal growth
\n pace will take time. Edward Leamer, Director of the UCLA Anderson
\n Forecast, argues that the \u201cGreat Recovery\u201d hasn\u2019t materialized.\n<\/p>\n
\n He writes that normally the country\u2019s total economic output or
\n GDP grows at 3 percent, however during this year\u2019s first three
\n months the US GDP grew at 2.4 percent. The current growth pace is
\n 15.4 percent below what\u2019s considered a “normal” growth trend,
\n Leamer wrote.\n<\/p>\n
\n “To get back to that 3 percent trend, we would need 4 percent
\n growth for 15 years, or 5 percent growth for eight years, or 6
\n percent growth for five years, not the disappointing twos and
\n threes we have been racking up recently,<\/i>” he said. “It\u2019s
\n not a recovery. It\u2019s not even normal growth. It\u2019s bad,<\/i>\u201d
\n Leamer argues.\n<\/p>\n
\n It\u2019ll take two more years for US GDP to return to the \u201cnormal\u201d
\n growth rate of 3 percent. The UCLA Anderson Forecast predicts it
\n will happen in 2015. GDP growth for this year is expected at just
\n 1.9 percent.
\n <\/p>\n
\n The forecast also predicts a decline in unemployment to 6.9
\n percent next year and to 6.6 percent by 2015. Also the forecast
\n foresees a boost in the US housing market, also pointing to
\n better economic health. The US housing market has been struggling
\n to rise from the depths of recession for several years. The
\n recent rebound in demand has once again lifted the sector.\n<\/p>\n
\n In the forecast Leamer also highlights the problems the US is
\n still facing despite efforts to boost growth and fight
\n unemployment.
\n <\/p>\n
\n “The tepid growth continues to obscure the nation’s most
\n fundamental problems: too much government spending funded with
\n too much borrowing, too little national savings to cover
\n late-in-life health care issues and too many workers lacking the
\n skills to compete in the modern economy,<\/i>” the UCLA press
\n statement said.\n<\/p>\n
\n The study also found that the State of California is feeling much
\n better than the rest of the country. It has displayed better
\n results in job growth in the year since April 2012, with only
\n Utah beating California.
\n <\/p>\n