By WisBusiness Staff
Two national economists said at a Wisconsin Banking Association event the Euro-zone crisis looms large for Wisconsin, the upper Midwest and the national economy.
“The No. 1 threat to my forecast is Europe,” said Chad Moutray, chief economist of the National Association of Manufacturers in Washington D.C. Moutray predicted GDP growth of more than 2.6 percent in the coming year, touting the advancement of manufacturing.
Moutray told hundreds of bankers and others at Tuesday’s annual WBA-organized Wisconsin Economic Forecast luncheon at the Monona Terrace that exports were a key to the manufacturing sector’s rebound from a bottom seen in December 2009.
Scott Anderson, a Wells Fargo economist and top national forecaster, also predicted modest national growth but at a lower rate — 1.8 percent higher GDP — in part because of what he said would be at least two quarters of recession in Europe. He added that export demand in Asia also appears to be slowing.
He said “Wisconsin is going in the opposite direction” in comparison to other states experiencing positive growth — a situation that could be worsened by continued demographic trends and slowing trade with Europe.
He didn’t rule out another U.S. recession this year and said odds may increase next year, adding the Euro-zone crisis was his “No. 1 concern.”
