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WH Pares 2008 Economic Forecast, Hikes Jobless Rate

Posted Nov 29, 07 12:30 PM CST in Business,  US    Editor's Choice

(Newser) – The White House cut back its expectations for 2008 economic growth today and said unemployment rates are likely to worsen, citing the housing slump. GDP will grow only by 2.7% next year, down from an earlier 3.1%, said officials from Treasury and the Council of Economic Advisers; and the jobless rate is expected to hit 4.9%, worse than the previous forecast of 4.7%.

“The housing market decline has been more significant than we expected,” said a top adviser. The unemployment rate would still be considered low, the AP cautions, as last year's 4.6% was a six-year low. Inflation was a bright spot in the new report, as consumer prices are now expected to rise only 2.1% in 2008, down from 2.5%.

Source Associated Press

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The White House   (Getty Images)
"While the difficulties in housing and credit markets and the effects of high energy prices will extract a penalty from growth, the US economy has many strengths, and I expect the expansion to continue,"...   (Getty Images)
President Bush, right, accompanied by Ed Lazear, Chairman of the Economic Advisers, makes a statement on the economy, Friday, Oct. 5, 2007, in the Oval Office in the White House in Washington.(AP Photo/Ron...   (Associated Press)
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housing market  • inflation  • Henry Paulson  • unemployment  • GDP  • Treasury Department  • Council of Economic Advisers


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