With the rest of the country still reeling from the worst housing crisis since the Great Depression, New York will today unveil fresh plans for its tallest residential tower.

The Beekman Tower, a 76-storey, 867ft luxury apartment building designed by Frank Gehry that will loom over lower Manhattan, is a symbol of the unallayed appeal of the city and the continued ability of ambitious projects in the city to draw financing.

New York added 40,800 jobs in April compared with a year earlier, its economy grew by more than 3% in the first quarter, and house prices are largely holding up.

Rae Rosen, senior economist at the New York Fed, says the economy is still taking time to climb down from last year’s exuberant growth. 'What we see right now is a gradual decelerating in the pace of growth and we expect that to continue throughout the year, slower and slower,' she said. 'Eventually we will hit... a decline, but right now we are well above zero.'

However, she warns that a recession is possible next year. Observers fear that while things look relatively rosy now, the worst may be yet to come.

Financial Times