2009 forecast: recession
A survey of top economists revealed that most of them believe the United States is in a recession, and will continue to be in one through 2009, CNNMoney reported.
According to the survey conducted by the National Association of Business Economists (NABE), 90 percent of 102 respondents were more pessimistic about the economy than they had been in July. Additionally, 79 percent said the economy will grow less than 1 percent in the next year.
“There has been a sharp decline in current and near-term expectations among economists,” said Ken Simonson, a member of the NABE committee that conducted the survey. “This represents a big turnabout in attitude about the economy.”
This change in outlook has led many economists to question the federal government’s involvement in the credit crisis.
In the survey, 58 percent of the respondents said that the rate cuts made by the Federal Reserve were having little impact. Only 36 percent of the respondents believed they were having a positive impact.
“Economists have a very pessimistic view of the Fed’s programs,” Simonson said. “The inability to get funding has lowered their near-term expectations for the economy.”
Increasing job cuts across the United States have convinced many economists that the nation is headed toward a recession, if it’s not already in one. Of those surveyed, 23 percent said their firms or industries were cutting jobs, and 44 percent said their companies’ profit margins were falling.
“Over the next six months, far more firms expect to cut back on employment, which will likely make the recession deeper,” Simonson said.

