Optimism Surges as Forecasters Predict Stronger U.S. Economy in 2024

Business economists now forecast a 2.2% growth rate for the U.S. economy in 2024, adjusting for inflation, signaling stronger-than-expected economic resilience despite the challenges of high interest rates aimed at controlling inflation.

Economists report the U.S. economy’s strength as the basis for the upbeat forecast. Sustained consumer spending, a stable job market, and government and household spending also contributed to this positive shift. 

The survey also noted an upward revision in job growth estimates for the year, although they remain lower than the previous year’s figures.

Inflation, a key concern for many Americans and a central issue in President Joe Biden’s re-election campaign, showed signs of cooling. 

Forecasters expect interest rate cuts to commence by mid-June. However, the Federal Reserve’s potential rate cuts carry the risk of lagging effects that could still lead to economic downturns.

High-interest rates emerged as the most significant risk to the economy among survey respondents. 

Meanwhile, global economic prospects appear less optimistic. The World Trade Organization highlights challenges like war and political instability affecting the international landscape.

For a more detailed analysis, read the full article on AP News.