SAN JOSE, Calif., Jan. 25 /PRNewswire-FirstCall/ -- California's economy has rebounded and will grow at a faster rate in 2007, Comerica Bank's chief economist, Dana Johnson, predicted today.
Speaking at Comerica Bank's third annual Economic Forecast and Policy Conference in Santa Clara, Johnson said that because of a slowdown in population growth and lingering effects of a housing recession, California's economy should lag behind the U.S. economy this year.
Johnson told about 350 business leaders at the Santa Clara Convention Center that he estimates the California real gross domestic product will grow at a rate of about 2 1/2 percent in 2007, with a national GDP rate of around 2 3/4 percent.
"The economy is looking a little more balanced and poised to reaccelerate in the coming year," he said. "A recession is not in sight."
"We have a number of years of growth ahead of us."
He also predicted that inflation will subside somewhat in 2007, and that the Federal Reserve Board will not cut interest rates this year.
In another presentation at today's conference, James Sweeney, senior fellow at the Stanford Institute for Economic Policy Research, said that California will be "pushing the national agenda" for new national energy policies, based on Gov. Arnold Schwarzenegger's moves to reduce greenhouse gas emissions in the state.
Johnson's speech coincided with the release of his quarterly California Economic Report, which is available on http://www.comerica.com/ (go to Economic Insights, National & State Economic Briefs).
About Comerica Bank
Comerica Bank is a subsidiary of Comerica Incorporated (NYSE: CMA), a financial services company headquartered in Detroit strategically aligned into three major business segments: the Business Bank, the Retail Bank, and Wealth & Institutional Management. Comerica focuses on relationships and helping businesses and people be successful. Comerica bank locations can be found in Michigan, California, Texas, Florida and Arizona, with select businesses operating in several other states, Canada and Mexico. Comerica reported total assets of $58 billion at Dec. 31, 2006. For more information, go to http://www.comerica.com/.
CONTACT: Barry Holtzclaw of Comerica Bank, +1-408-556-5111, or
+1-408-315-6554, or bholtzclaw@comerica.com
