While the 2011 economic forecast may not be quite as bleak as many doomsday predictors would have you think, it’s not looking particularly optimistic either. Here we will take a closer look at what many economic experts are saying about the 2011 economy, including the good news and the bad.

One of the most reliable predictors of a lackluster economy in 2011 is the slow monetary growth which was confirmed by the GDP data released for the second quarter. However, it’s not all bad news. Let’s take a look:

2011 Economic Forecast: Some Positives

There seems to be some recent evidence that the Fed is planning to stimulate the economy. Although slight job growth has been seen in several sectors, there are still record numbers of individuals who are out of work and there seems to be no immediate relief in sight. This seems to point to a prolonged period of slow monetary growth, and many at the Fed are beginning to feel that stimulating the economy to speed up the process would not be inflationary. Also, the Fed is set to get three new members which could equate to a small shift in economic policy.

2011 Economic Forecast: The Bad News

Even if the Fed were to begin today on implementing a stimulation measure, there can be no doubt that monetary policy takes time. The tough times of the last 12 months, characterized by the slow growth of the money supply, will continue to have persistent, long-term effects and it may take up to 12 months or more before we actually feel any relief. Many experts who predicted a rebound in late 2010 are now shifting their position and saying that late in the year 2011 is a more likely timeframe for noticing any significant changes to the overall economic picture.

There is also the potential for a “double-dip” recession. The slow economic growth, coupled with the global financial crisis in both the US and overseas, reduces the amount of cushion we have against a heavy downward economic force, and unless “real growth” is present by the end of the first quarter in 2011, the likelihood of a double-dip recession could be very real.

There is no doubt that the United States is far from being “out of the woods” when it comes to the 2011 economic forecast. The confidence of US investors is still reeling from the continuing economic crisis, and unless we see substantial job growth fairly soon we could be looking at another year or more of worsening  recession.