Credit unions will remain healthy during the next year, asmemberships continue to grow, CUNA Mutual Group Chief EconomistSteve Rick predicted Tuesday.

“The economy will continue to grow,” Rick said at the CUNAMutual Group’s annual Discovery Conference. “There won’t be arecession.”

Credit union membership is expected to increase 3.8% this year,slowing somewhat to 3.3% next year, Rick said. “Our membershipgrowth has been on a tear,” Rick said.

Credit unions will have stronger balance sheets, but weakerincome statements during the next year. Credit unions are likely tosee a 9% increase in loans, Rick said, adding, “We’re going into acredit boom the likes of which we haven’t seen in more than adecade.

The economy is expected to grow in 2.4% in 2017—faster than the1.6% this year, he predicted. That growth is driven—in part---bygrowth in home construction, which is expected to grow6%.

“We have a shortage of homes in this nation,” Rick said.

Unemployment is expected to fall to 4.7%, which Rick said isbasically considered full employment. Rick said that lowunemployment will mean that credit unions will have problems hiringand keeping employees.

On the other hand, he said, people will be purchasing morevehicles.

Vehicle sales are expected to reach a record 17.75 million nextyear, with home sales totaling some 5.9 million homes.

Loan delinquency rates will be about 75 basis points, accordingto Rick. “Our balance sheets will be strong,” he added.

Rick predicted that the Federal Reserve will increase interestrates a quarter of a percent before the end of the year, followedby three increases during 2017—resulting in about a 1%increase.