© 2025 WGCU News
PBS and NPR for Southwest Florida
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

What recession? Professional forecasters raise expectations for the U.S. economy in 2024

FILE - A "Help Wanted" sign is displayed in Deerfield, Ill., Wednesday, Sept. 21, 2022. The year looks to be a much better one for the U.S. economy than business economists were forecasting just a few months earlier, according to a survey released Monday, Feb. 26, 2024.
Nam Y. Huh/AP
/
AP
FILE - A "Help Wanted" sign is displayed in Deerfield, Ill., Wednesday, Sept. 21, 2022. The year looks to be a much better one for the U.S. economy than business economists were forecasting just a few months earlier, according to a survey released Monday, Feb. 26, 2024.

NEW YORK — This year looks to be a much better one for the U.S. economy than business economists were forecasting just a few months ago, according to a survey released Monday.

The economy looks set to grow 2.2% this year after adjusting for inflation, according to the National Association for Business Economics. That’s up from the 1.3% that economists from universities, businesses and investment firms predicted in the association’s prior survey, which was conducted in November.

It’s the latest signal of strength for an economy that’s blasted through predictions of a recession. High interest rates meant to get inflation under control were supposed to drag down the economy, the thinking went. High rates put the brakes on the economy, such as by making mortgages and credit card bills more expensive, in hopes of starving inflation of its fuel.

But even with rates very high, the job market and U.S. household spending have remained remarkably resilient. That in turn has raised expectations going forward. Ellen Zentner, chief U.S. economist at Morgan Stanley and president of the NABE, said a wide range of factors are behind the 2024 upgrade, including spending by both the government and households.

RELATED STORIES

Economists also more than doubled their estimates for the number of jobs gained across the economy this year, though it would still likely be down from the previous one.

Offering another boost is the fact that inflation has been cooling since its peak two summers ago.

While prices are higher than customers would like, they’re not increasing as quickly as they were before. Inflation has slowed enough that most of the surveyed forecasters expect interest rate cuts to begin by mid-June.

The Federal Reserve, which is in charge of setting short-term rates, has said it will likely cut them several times this year. That would relax the pressure on the economy, while goosing prices for stocks and other investments.

Of course, rate changes take a notoriously long time to snake through the economy and take full effect. That means past hikes, which began two years ago, could still ultimately tip the economy into a recession.

In its survey, NABE said 41% of respondents cited high rates as the most significant risk to the economy. That was more than double any other response, including fears of a possible credit crunch or a broadening of the wars in Ukraine or the Middle East.

Trusted by over 30,000 local subscribers

Local News, Right Sized for Your Morning

Quick briefs when you are busy, deeper explainers when it matters, delivered early morning and curated by WGCU editors.

  • Environment
  • Local politics
  • Health
  • And more

Free and local. No spam. Unsubscribe anytime.

More from WGCU
  • Gray Catbirds are in a bird family known as the “Mimidae” – because they mimic other birds, other animals, and even mechanical sounds. Other members of their family in Florida include the Brown Thrasher and the Northern Mockingbird – two excellent mimics that we often see and hear year-round as they feed, sing, and nest in relatively open vegetation. They often mimic the vocalizations of other bird species and it has been suggested that their mimicry may send the message that the area is crowded – and cause other birds to search for food elsewhere.
  • President Donald Trump's administration is demanding that states reverse full SNAP benefits issued under recent court orders. The U.S. Supreme Court has stayed those rulings, affecting 42 million Americans who rely on the program. The U.S. Department of Agriculture's demand follows warnings from over two dozen states about potential "catastrophic operational disruptions" if they aren't reimbursed for benefits authorized before the stay. Nonprofits and Democratic attorneys general had sued to maintain the program, winning favorable rulings last week. Wisconsin, for example, loaded benefits for 700,000 residents but now faces financial strain.
  • Traffic will shift to the new Big Carlos Pass bridge overnight Thursday, Nov. 13.