A survey released today suggests this year may be a much better one for the U.S. economy than business economists were forecasting just a few months ago, according to the Associated Press.
The economy looks set to grow 2.2% this year after adjusting for inflation, according to the National Association for Business Economics (NABE). 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.
Economists also more than doubled their estimates for the number of jobs gained across the economy this year. 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.
In its survey, NABE said 41% of respondents cited high interest 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.
