HOUSTON, Aug. 25, 2011 /PRNewswire/ -- Economic activity
is likely to accelerate in the coming quarters, according to a
report released by Nathaniel Karp,
chief U.S. economist for BBVA Compass, though growth rates will be
below average, with low business expectations and household
deleveraging limiting job creation and personal consumption.
Karp also warned that the economy may be undergoing a structural
transformation that could result in low growth for several years.
"Neither a quick fiscal fix nor a long period of decreased
borrowing costs will be enough to catalyze fast growth," he said.
"We need to overcome important challenges in order to increase
potential GDP growth."
The findings are part of the recently released BBVA Compass
third quarter U.S. Economic Outlook, which contains global,
national and regional economic outlooks and forecasts, in addition
to features on the auto industry and Alabama's recovery from the April 27 tornadoes.
According to the bank's economic research group:
- U.S. economic expansion will gradually pick up in the second
half of the year, yet downside risks have increased.
- Global growth remains strong in emerging markets, while
Europe must resolve concerns about
sovereign debt.
- The BBVA Compass Sunbelt Region continues to expand faster than
the U.S. average.
- U.S. auto sales are rebounding as Japanese production is
restored.
- Prices of residential real estate indicate greater stability
for non-distressed properties.
"Although the BBVA Compass Sunbelt Region had a weak recovery
relative to the rest of the U.S. in 2010, it continues to expand
faster than the national average and employment is growing in most
states," said Karp. "We expect the region to outperform the U.S. in
2011 and 2012."
ABOUT BBVA COMPASS
BBVA Compass is a Sunbelt-based financial institution that
operates more than 712 branches including 374 in Texas, 93 in Alabama, 78 in Arizona, 65 in California, 45 in Florida, 36 in Colorado and 21 in New Mexico. BBVA Compass ranks among the top
20 largest U.S. commercial banks based on deposit market share and
ranks among the largest banks in Alabama (3rd), Texas (4th) and Arizona (5th). BBVA Compass has been
recognized as one of the nation's leading Small Business
Administration (SBA) lenders, earning 'Lender of the Year' honors
in 2009 and 2010. Additional information concerning BBVA Compass
can be found on our website www.bbvacompass.com.
BBVA Compass is a subsidiary of BBVA Compass Bancshares, Inc., a
wholly owned subsidiary of BBVA (NYSE: BBVA) (MAD: BBVA). BBVA is a
financial services group with approximately $800 billion in total assets, 48 million clients,
7,400 branches and approximately 110,000 employees in more than 30
countries. BBVA ranks among the top 20 largest financial
institutions in the world based on market capitalization and 21st
in Global Finance magazine's list of the "World's 50 Safest
Banks" for 2010. BBVA provides its customers around the world with
a full range of financial services, including commercial and
wholesale banking, retail banking services, consumer loans,
mortgages, credit cards, securities brokerage, wealth management,
pension plan management and insurance. The BBVA Group maintains a
leadership position in Spain,
Mexico, Latin America and the Sunbelt Region of
the United States, as well as
operations in China, France, Germany, Hong
Kong, Italy, Japan, Singapore, Switzerland, Turkey, and the United Kingdom. More information about the
BBVA Group can be found at www.bbva.com.
Editor's Note:
BBVA Compass is a trade name of Compass Bank.
SOURCE BBVA Compass