Economic recovery on the way despite slow job market recovery

The recovery from the Great Recession is underway and progressing well, as discretionary spending for businesses and households are both expected to see “sizable gains” in their personal finances near future, according to the National Association for Business Economics.

Comparable to predictions made last November that the real gross domestic product would grow by 3.2 percent, the NABE’s latest prediction – which is the consensus of 48 macroeconomic forecasters – calls for a 3.1 percent growth during 2010 and 2011.

However, while the overall economic recovery is expected to remain on track, the outlook did envision a slight delay that would see increases in the near term before seeing sustained growth over the next two years.

“We see a healthy expansion under way, although it will take time to reduce economic slack and repair damaged balance sheets,” said NABE President Lynn Reaser, who is also a chief economist at Point Loma Nazarene University.