Economist Predicts Moderate Growth


The economy is not sliding back into recession, but GDP will only expand at an annual rate of 2% to 2.5% until the housing market recovers, according to Martin Regalia, senior vice president–economic and tax policy for the U.S. Chamber of Commerce.

Speaking Tuesday to the AICPA governing Council in Phoenix, Regalia, the chamber's chief economist, highlighted three primary points.

First, the economy cannot climb above current growth levels without a resurgence in housing. At current growth levels, high unemployment will continue. “We’re creating a chronically unemployed population whose skills are eroding on a daily basis,” he said.

Second, inflation will limit the Federal Reserve’s ability to continue current zero-interest monetary policy. “The inflation picture—while OK—is not getting better and showing signs of cracking,” he said.

Third, government budget issues will continue to put a damper on economic growth. “The only way we’ll be able to address the budget deficit is to address entitlement programs and taxes,” said Regalia. “Don’t expect either of these to happen in the next 13 months.”

Matthew G. Lamoreaux ( ) is a freelance writer.

More from the JofA:

 Find us on Facebook  |   Follow us on Twitter  |   View JofA videos


Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.


News quiz: Retirement planning, tax practice, and fraud risk

Recent reports focused on a survey that gauges the worries about retirement among CPA financial planners’ clients, a suit that affects tax practitioners, and a guide that offers advice on fraud risk. See how much you know with this short quiz.


Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.