The Economy in 2013

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Forecasters predict that the U.S. economy will continue to grow during 2013, though slowly. Some economists suggest that the GDP, the gross domestic product will rise by just over 2% while others predict a rise of 3%. The housing market is in recovery and some predict substantial gains during this year and next. The labor market has also grown with an average of over 150,000 new jobs per month. However, consumer spending has remained about the same as in 2012. In consumer surveys, many express that they will proceed cautiously until they have seen the effects of the new healthcare system and other changes in the tax law. Also, food and gas prices are expected to rise, and this will impact spending in other sectors.

In Europe, the economic crisis appears to be worsening. The ongoing hardship has caused increases in disease and suicide rates, and recent spending cuts could further slash the budgets of social welfare organizations.