Divergence in Opinions about U.S. Growth for 2010

Looking ahead to the U.S. dollar forecast for 2010, many are looking at the likelihood for U.S. economic growth. However, analysts disagree on what is likely to happen in 2010.

Kathy Lien offers a summary in FX360 about two different opinions regarding U.S. economic growth prospects in 2010:

Nobel Laureate Paul Krugman is particularly pessimistic. In comments made this morning, he said the unemployment rate will most likely increase, house prices could drop by another 5 to 10 percent while he sees a 30 to 40 percent chance of a double dip recession. With fiscal stimulus expected to fade by mid-year, additional monetary stimulus may also be needed. Blackstone’s Byron Wein disagrees and says he sees the unemployment rate dropping below 9 percent. This divergence in expectations suggests a murky outlook for the U.S. labor market and U.S. economy.

It should be interesting to see what happens going forward.