Gary Shilling Sees GDP Growth At 2% Over Next Decade

Noted permabear Gary Shilling sees U.S. real GDP growth at 2% over the next decade. He also foresees more problems for the housing market when he shared his views with Tech Ticker today.

On housing, Gary Shilling says inventory remains high and forecasts another 10% drop in prices. He thinks it will be one or two years until housing truly bottoms.

Shilling believes the American worker will continue to struggle because of the difficulty in finding new jobs and the sheer number of jobs lost during the recession, which is estimated to be 8.4 million. Also, his 2% GDP growth forecast is below the 3.3% replacement level needed to keep unemployment steady.

Finally, U.S. deficits will remain above $1 trillion and servicing such debt will hinder the economy's growth rate going forward.