Moody's Analytics sees 2012 GDP growth of 2.6% « HousingWire

Mark Zandi, chief economist for Moody's Analytics, expects U.S. gross domestic product growth of 2.6% in 2012, although this estimate is contingent on European debt concerns and domestic policy.

Zandi sees American unemployment remaining high in 2012, while interest rates and inflation remain low.

At the same time, he sounded an alarm for policymakers, declaring that without action on their part, federal fiscal policy could pull real GDP down 1.7 percentage points, as tax and spending policies expire. What remains on the table is the reduced payroll tax rate and unemployment insurance benefits, Zandi said.

The European debt crisis is another looming threat.

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