Romer set to testify on economy, stimulus

Christina Romer, head of the Council of Economic Advisers, will testify next week on the nation's short- and long-term economic outlook. 

Romer, who will testify before the Joint Economic Committee, also will provide an analysis of the effects of the economic stimulus legislation on growth and job creation.

In a recent interview, Romer said that job creation proves that the  stimulus has worked. 

"In the first six months of 2009, we lost 3.7 million jobs in the private sector," she said in a PBS interview. "In the first six months of this year, we added some 600,000 jobs in the private sector. That is an amazing turnaround."

Although economists have raised concerns about a possible double-dip recession, Romer said this recovery is unique and unusual. 

The economy is making a slower-than-expected recovery because "it is a recovery coming out of a financial crisis. It is a recovery coming out of a bubble and bust in our housing market," she said. 

"So you don't have the normal drivers of recovery, like a big boom in your construction sector because this is an unusual recovery."

Romer noted that manufacturing is adding a boost to the economy on top of a growth in exports, investment and firms buying equipment and software.

"I think a vote of confidence in the economy. It is another source of demand," she said. "It's just different than what we've often seen."

The panel is expected to meet July 14.