Preview of Main Economic Forecasts:
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Main Economic Forecasts


     The main economic forecasts used to understand the general outlook of the economy included the Congressional Budget Office (CBO) forecast, the Administrations Forecast, the Blue Chip consensus forecasts and the Mortgage Bankers Association (MBA) forecast. Not all forecasts contained the required indicators for the chosen indicators: employment growth, interest rates, housing starts, and business investment. For this reason, the analysis focused on a combination of the forecasts to understand the relationships among the indicators. Gleaning the economic forecasts led to a general understanding of the economy. Conducting further research on the economic forecasts led to a richer understanding of the selected indicators.

The focuses of the economic forecasts were real gross domestic product (GDP) and unemployment. The selected forecasts discussed real GDP and unemployment in depth to give the reader a general understanding of how the economy might respond in the next two years. According to the MBA, real GDP will drop in 2005 in comparison with 2004 and continue to decrease in 2006. In 2007, real GDP will increase slightly in comparison to the previous year. The MBA states the percent change in annual rates will be 4.4 in 2004, 3.8 in 2005, 3.3 in 2006 and 3.5 in 2007. According to CBO, real GDP will decrease in 2005 compared to 2004; GDP will decrease further in 2006 and continue to decrease during the 2007 through 2010. The CBO states the ... [to view the full essay now, purchase below]

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