Former IMF economist says economy will grow 7% next year

Seems a bit extreme but wouldn’t it be nice to see that kind of growth again? It’s not clear what could really trigger such fantastic growth but it certainly won’t be consumers. Newsweek:

Mussa, a former chief economist of the International Monetary Fund now at the Peterson Institute in Washington, argues that the recovery will defy the prevailing pessimism. From mid-2009 to the end of 2010, he says, the U.S. economy will grow almost 7 percent, about double the 3.3 percent gain envisioned by the 50 or so economists in September’s Blue Chip Economic Indicators. The world economy will also outperform, says Mussa. In 2010, growth will rebound to 4.2 percent from 2009’s decline of 1.1 percent. By contrast, the latest IMF forecast in July has a 1.4 percent drop in 2009 and a feeble 2.5 percent gain next year.

NOTE FROM JOHN: Not an economist here, but I did study it in grad school. Doesn’t this rapid of growth risk inflation?

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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