Economists Forecast 2.3 Percent Growth Rate
Vittorio Hernandez

New York, NY, United States

Economists shared a gloomy outlook for the U.S. for the second half of 2011.

They forecast the country's economy would register a 2.3 percent annual growth rate from July to December.

The H2 forecast is lower than previous predictions, similar to less optimistic outlooks for 2012 of a 2.4 percent economic expansion and 2.8 percent in 2013.

The weak economic growth rate forecast comes on the heels of the downgrade by Standard & Poor's of Washington's credit rating to AA+ from triple A last week.

Even before the downgrade there are fears that the U.S. would slip back into recession.

To compound the country's financial woes, the U.S. registered a 2 percent plus drop in exports from May to June, a decline in household spending and volatility in the equity markets.

U.S. President Barack Obama insisted there is nothing wrong with the U.S., but admitted something is wrong with its politics, which he blames for the impasse on the debt limit increase, which resulted to the S&P downgrade.

The Fed itself has a dim projection for the American economy. The Federal Open Market Committee stated on Aug. 9 that it expects a slower pace of recovery in the coming quarters amid a rise in downside risk to the country's economic outlook.

To help boost the lagging economy, the Fed announced this week that it will hold its near-zero key lending rate for the next two years.

Twitter: @ihavenet