End of sag by end of the year?
Los Angeles — To the long list of predictions on the current recession, add one more projection: The slump will bottom out by the end of this year, according to hundreds of the nation's leading business economists.
Just over 63 percent of the 3,300 corporation are banking economists surveyed bythe National Association of Business Economists, which is holding its annual conference here, felt the recession would reach its trough by the end of 1980, Monitor correspondent Sara Terry reports.
The economists were less optimistic, however, in their projections of the annual growth rate of the gross national product. Nearly half predicted the rate will be less than 3 percent through 1985.
Inflation, poor productivity, and inadequate capital investment were rated as "very serious" problems facing the United States over the next five years. "Serious" problems listed by the economists included rising defense spending, excessive tax burdens, and slow economic growth.
About 60 percent of the economists, who represent many of the Fortune 500 corporations, also said that, based on economic policies espoused by the presidential candidates, Ronald Reagan is best qualified to solve the nation's problems. John Anderson was preferred by 15.1 percent, while 10.9 percent backed President Carter.