Gross Raises U.S. Economic Growth Forecast to 3% in 2013

Bloomberg – Bill Gross, whose Pacific Investment Management Co. coined the phrase “new normal” in 2009 to describe an era of subpar growth and a diminishing role for developed economies, sees the U.S. outlook brightening — at least for 2013. Gross, co-chief investment officer of Pimco, doubled his forecast for growth in U.S. gross domestic product to 3 percent for this year, up from the firm’s December forecast of 1.25 percent to 1.75 percent in 2013. The U.S. is “moving towards a 3 percent real GDP growth rate” in 2013, in part because of housing, and a nominal growth rate of 5 percent, Gross said today in an interview with Tom Keene and Mike McKee on “Bloomberg Surveillance.” Read Article

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