U.S. Chamber’s Donohue Sees 2012 Growth Averaging Less Than 3%
January 20, 2012, 1:02 PM ESTBy William McQuillen
Jan. 12 (Bloomberg) -- The U.S. economy will slow early this year from the pace at the end of 2011, then accelerate and finish with an annual growth of less than 3 percent, U.S. Chamber of Commerce President Thomas Donohue said as the nation’s largest business group offered its forecast for 2012.
“America’s most pressing economic challenge is the lack of sufficient growth to create jobs, expand incomes, reduce government deficits, and fund essential programs,” according to excerpts provided in advance of Donohue’s annual speech on the state of U.S. business today in Washington.
Growth in the gross domestic product will slow to about 2.5 percent early in the year, then speed up to a rate of about 3 percent, Donohue said. Economists surveyed by Bloomberg project growth will slow in the first quarter to an annual rate of 2 percent from 3.1 percent in the fourth quarter of last year and will average 2.3 percent for all of 2012.
“If government starts removing the impediments that we have long identified as stifling growth and jobs, then it will be incumbent on business to start taking a few more risks and making some new investments,” he said.
Donohue, who warned that 2012 should “not be a wasted year” during the presidential election, said the top priority for the U.S. should be creating jobs. The unemployment rate dropped to 8.5 percent in December from 9.4 percent a year earlier.
Donohue has called on the government to aid job creation with reduced regulations, creation of an infrastructure bank, and approval of the Keystone XL pipeline from Canada to Texas.
Donohue’s projection falls short of the Washington-based International Monetary Fund. Olivier Blanchard, the chief economist for the IMF said on Jan 6 that he expected growth “not very far” from 3 percent to 4 percent, revising the IMF’s September estimate of 4 percent for 2012.
--Editors: To contact the reporter on this story: William McQuillen in Washington at bmcquillen@bloomberg.net
To contact the editor responsible for this story: Jon Morgan at jmorgan97@bloomberg.net
