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UCLA predicted solid GNP growth.

Sounding positive chords for the U.S. and California economies, the UCLA Business Forecasting Project said the inflation-adjusted gross national product will rise 3.7% in 1987, a full point greater than this year’s increase. But as the effect of lower energy prices wears off, consumer prices will rise a still modest 4.2%, compared to this year’s 2.2%, UCLA said. Other forecasts: The prime lending rate will climb from today’s 7.5% to an average of 8.3% next year, and unemployment will dip to 6.5%. Paced by aerospace gains, California’s economy will slightly outperform the nation’s, the UCLA project said.


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