By Bill Merrick
CUNA economist predicts tepid loan growth for foreseeable future.
The economy is heading in the right direction. It’s just taking the scenic route.
That’s the gist of what Mike Schenk, vice president of CUNA’s economics and statistics department, told the CUNA Lending Council Conference in Miami. He says credit union lenders have reasons for optimism in the coming year despite some lingering obstacles. It will just take longer than normal to recover.
“The consumer sector is about done deleveraging, but the government likely will make big spending cuts and raise taxes,” Schenk says. “So the economy will continue to limp along.”
Schenk offered these insights into the economy:
►We haven’t reached our key goals yet. The nation’s top goals are to grow the economy and add jobs. Although there has been improvement—the economy grew 1.8% last year and 2% through the third quarter of 2012—the long-term average for economic growth is 3.25%.