Leading Silicon Valley Economist Predicts Slow Economic Growth In 2013

SANTA CLARA (KCBS) – One of Silicon Valley’s leading economists is predicting that the economy will continue to grow at a slow, but steady pace in 2013.

Santa Clara University Economic Professor Mario Belotti’s annual economic forecast calls for a 2.5 percent growth this year or to use a weather analogy:

Leading Silicon Valley Economist Predicts Slow Economic Growth In 2013

“I think it’s still partly cloudy. It’s not quite sunny yet,” he said.

Belotti said the economy faced three major obstacles in 2012: the crisis in Europe, a slowdown in China and the fiscal cliff. But he said the U.S. has weathered all three, for the most part.

Sequestration is still a concern for 2013 but Belotti said one bright spot is the housing sector, which has a multiplier effect on the economy.

“Everyone that buys another house, a new home or existing home, after they buy the place, they spend another $10,000 to $20,000 to change some of the things they don’t like,” he said.

Belotti predicts inflation will remain low this year, along with long-term interest rates.

(Copyright 2013 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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