New Normal Becomes Old Normal as Exports Propel U.S. Recovery – BusinessWeek
The “new mix” is out to topple the “new normal” as the paradigm for America’s economic future.
The 5.9 percent annualized surge in fourth-quarter growth
– the fastest since 2003 — was powered more by exports and business investment than the traditional drivers of consumption and housing. This new mix of demand will boost the economy by 3.7 percent in 2010 and pave the way for 3.5 percent annual average increases thereafter, said Joseph Carson, an economist at AllianceBernstein in New York, who coined the phrase.
His forecast contrasts with the 2 percent rate penciled in for later this year and the longer term by new-normal proponent Mohamed El-Erian, chief executive officer of Newport Beach, California-based Pacific Investment Management Co., who argues that growth will be depressed by consumer retrenchment and financial regulation.
via New Normal Becomes Old Normal as Exports Propel U.S. Recovery – BusinessWeek.