US economic growth to remain slow in 2012

Updated: 2011-12-20 15:34


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WASHINGTON - The US economy is projected to grow at a slow pace because of ongoing challenges, US experts said on Monday.

The housing market will probably remain relatively dormant, and export demand is also likely to slow due to the slowdown in Europe, Federal Reserve Bank of Richmond President Jeffrey Lacker said at a conference organized by the Charlotte Chamber of Commerce.

Lacker estimated that the US economy would advance 2 percent to 2.5 percent next year, saying there will be no need of additional stimulus because inflation is expected to meet central bank goals.

"A recent cooling in prices is likely to prove as transitory as did the acceleration we saw earlier in the year," said Lacker. "Despite this year's run-up, I believe the inflation outlook is reasonably good."

"2012 will be another year that's a grind in the economy," said Brian T. Moynihan, Chief Executive Officer of Bank of America, adding that companies do not feel the certainty of opportunity to make big investments.

Moynihan said that the US economy might expand about 2.1 percent in 2012 as the labor market would not improve "a lot" next year.

The US economy has seen constant improvement recently, with the unemployment rate declining to 8.6 percent last month. Many economists forecast economic growth will be raised to 3 percent in the final quarter this year. However, the US Federal Reserve reiterated last week the nations' economy would continue its slow growth in the following several quarters.