predictions

Goldman Sachs Economic Forecast unemployment peaking in 2011

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Yes, not 2010, that's 2011, according to an economic forecast by Goldman Sachs.

On James Pethokoukis Reuter's blog, is Goldman Sachs 2011 forecast would be an absolute disaster for Dems. Contained within are leaked Goldman Sachs economic predictions:

The key features of our 2011 outlook:

  1. a strengthening in growth from 2.1% on average in 2010 to 2.4% in 2011, with real GDP rising at an above-potential 3½% pace in late 2011
  2. A peaking in unemployment in mid-2011 at about 10.75%
  3. extremely low inflation – close to zero on a core basis during 2011
  4. a continuation of the Fed’s (near) zero interest rate policy (ZIRP) throughout 2011.

5.5% GDP Contraction for Q4, Analysts Predict

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The actual numbers from the Commerce Department are not out until January 30th. Yet both Bloomberg and Marketwatch are reporting a 5.5% annual rate drop in GDP for Q4.

Gross domestic product contracted at a 5.5 percent annual rate from October through December, the biggest drop since 1982, according to the median estimate in a Bloomberg News survey ahead of Commerce Department figures due Jan. 30.

Real economic activity fell off a cliff during the fourth quarter, producing a sharp drop in employment, output and spending," wrote economists at Wachovia.
And the worst part is that it's not over. Economists expect another huge decline in the first quarter, with a smaller contraction in the second quarter