In fact, many analysts believe 2014 will be the year the recovery from the Great Recession finally achieves the robust growth that’s needed to accelerate hiring and reduce still-high unemployment. Many analysts think annual economic growth will remain around 3 percent for the rest of the year.
If that proves accurate, the economy will have produced the fastest annual expansion in the gross domestic product, the broadest gauge of the economy’s health, in nine years. The last time growth was so strong was in 2005, when GDP grew 3.4 percent, two years before the nation fell into the worst recession since the 1930s.
A group of economists surveyed this month by The Associated Press said they expected unemployment to fall to 6.2 percent by the end of this year from 6.7 percent in March.
One reason for the optimism is that a drag on growth last year from higher taxes and deep federal spending cuts has been diminishing. A congressional budget truce has also lifted any imminent threat of another government shutdown. As a result, businesses may find it easier to commit to investments to modernize and expand production facilities and boost hiring.
“Growth came to a grinding halt early this year, but with consumers spending and payrolls expanding, the future looks a lot brighter,” said Joel Naroff, chief economist at Naroff Economic Advisors.
AP Economics Writer Christopher S. Rugaber contributed to this report.