Merrill Slashes 2006 U.S. GDP Forecast

Adjusted for inflation, GDP growth in the United States will be a sub-par 2.7% in 2006, half a percentage point below its previous forecast of 3.2%, says Merrill Lynch & Co., New York.

Merrill currently is forecasting 3.5% real growth for 2005, right in line with the potential growth rate of the economy.

Merrill is now assuming oil at $50 a barrel (it had been forecasting $40), no change in the value of the U.S. dollar against other major currencies (it had been predicting a 4% decline) and a federal funds target rate of 4% at yearend 2005 (it had been looking for a 3.5% target rate).

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish