Steve Matthews and Millie Munshi
Thursday, Sept 9th, 2009
The U.S. economy will start to pull out of a recession by yearend, helped by “remarkable growth” in productivity and a depletion of inventories, former Federal Reserve Chairman Alan Greenspan said.
“A lot of pieces are falling into place for recovery,” Greenspan said in a speech in New York. He predicted “a fairly pronounced recovery not only in the U.S.,” but globally. “Surprises are on the upside.”
Greenspan last month said the U.S. economy could resume growth with a 2.5 percent expansion in the current quarter, while adding there was still a risk of a “second wave down.”
The world’s biggest economy contracted at a 1 percent annual pace in the second quarter and economists surveyed last month by Bloomberg News predicted growth would average 2.1 percent in the second half of the year.