Where is the Economy Headed in 2013?
Posted at 8 a.m. on Dec. 26, 2012
Bill McBride presents the ten biggest unknowns that will drive the economy in 2013.
“I assume some sort of fiscal agreement will be reached soon, but how much austerity will be included?… Hopefully default is off the table, but you never know… Heading into 2013 there are still significant downside risks from the European financial crisis and from U.S. fiscal policy.”
“For the last two years I’ve been too pessimistic on the unemployment rate because I was expecting some minor bounce back in the participation rate. Instead the participation rate continued to decline. Maybe 2013 will be the year the participation rate increases a little.”