The UCLA Anderson Forecast predicted the national economy will slow, but not enter into a recession, according to an Anderson press release Wednesday.
The forecast predicted the growth of the national economy will slow to 0.4% in the second half of 2020 and then rebound in 2021 to 2.21%. According to the press release, senior economist David Shulman said the forecast is not quite predicting a recession, but it is pretty close.
The forecast also predicted the unemployment rate in California will rise to an average of 5.1% in the fourth quarter of 2020 due to the slow national growth rate and a weak housing market.
The forecast acknowledged that the economy is currently in flux due to a number of domestic and international factors, such as the United States’ trade war with China, President Donald Trump’s criticism of the chair of the Federal Reserve, and Brexit.
