Comments (0)

By AZ Advisory Team, January 18, 2010 10:08 am

Following four consecutive quarters of contraction, GDP expanded at an annualized rate of 2.2 percent in the third quarter of 2009, signaling a technical end to the recession. The resumption of growth marks an important turning point; however, the increase is attributable to government spending and incentives such as the “Cash for Clunkers”program and the first-time homebuyer tax credit. With only $234 billion of the $787 billion stimulus package paid out to date, government spending should support modest economic growth through most of 2010. A more vigorous, self-sustaining expansion is unlikely to gain traction until the second half of the year, when renewed business and consumer confidence will translate into increased demand, replacing the stimulus as the primary driver of economic growth.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.