Treasury Secretary Snow: Recovery underway; economy poised for growth and job creation

In an interview with Lou Dobbs on CNN, Treasury Secretary John Snow said he expects gross domestic product (GDP) to grow at a significantly higher pace in the second half of 2003 and in all of 2004—growth that should help end the longest labor-market slump since World War II.

Snow said, "We're looking at growth rates in the third quarter of over 3 percent, in the fourth quarter of over 3.5 percent, and in 2004, of over 4 percent. If the economy is growing that strongly, that will mean those jobless numbers will go down, and the employment rolls will go up.

"I think the recovery is under way, and the economy is poised for a good takeoff."

Snow alluded to the recently passed tax cut as a catalyst that will spur economic growth. He said that companies finally have shaken off the effects of the technology bubble and are ready to spend money again.

Snow said, "We have a corporate structure that's leaned out—inventories are tight as a drum, corporate America is very productive, and they've taken a lot of costs out. So when the economy comes back, I think we're going to see a nice pick-up in profitability and cash flows—and that's always the precursor of expansions in capital spending."





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