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News Link • Economy - Economics USA

Forecast Through 2050 Is The Most Depressing Forecast You'll Ever See

•, Sam Ro
Famed investor Jeremy Grantham just released his new quarterly letter to GMO clients, and it's depressing.

He writes that US economic growth will be less than 1 percent for the next 40 years. This is in contrast to the above 3 percent growth the economy has experienced for as long as we can remember.

People take Grantham seriously because he predicted bubbles in Japanese stocks in 1989, U.S. stocks in 2000, and most risk assets in 2007.

In his words:
The U.S. GDP growth rate that we have become accustomed to for over a hundred years – in excess of 3% a year – is not just hiding behind temporary setbacks. It is gone forever. Yet most business people (and the Fed) assume that economic growth will recover to its old rates.

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