Projecting Real GDP Growth

Brian Blackstone writes that Randy Kroszner is optimistic about productivity growth in America:

Washington Wire: U.S. Productivity Push: Robust U.S. productivity growth is likely to persist "for some time," providing continuing support to the U.S. economy and living standards, Federal Reserve governor Randall Kroszner said. "The rate of technology growth appears to be proceeding apace, and further diffusion of already existing technologies and applications to more firms and industries should continue to boost productivity," Kroszner said in remarks prepared for a group of economic forecasters in New York.

Economists have pegged the annual productivity growth trend at 2.5%, which is near the 1995-2000 period, he noted, and "a good case can be made" that those gains will persist. Productivity growth, Kroszner said, "is a key source of higher living standards."