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Economists are increasingly confident that the US economy will avoid a recession this year, Inc. reports.
In a recently released outlook from the National Association for Business Economics, nine out of 10 economists surveyed predict the economy will reach a soft landing this year.
Instead of a downturn, economists say they expect stronger growth through the rest of the year into next year. Economists predict the economy will grow by an annual average of 2.4% this year, up from the previous median forecast of 2.2%.
While a recession is less likely, economic conditions are still a concern for entrepreneurs. While businesses are more likely to see higher growth, and higher customer spending, the businesses themselves will also face higher costs thanks to inflation.
“The NABE Outlook Survey panel expects inflation to remain a concern,” says NABE President Ellen Zentner, who is also the chief U.S. economist at Morgan Stanley. “With higher inflation expectations, panelists now anticipate the Federal Reserve’s Open Market Committee will cut rates by half a percentage point—down from three-quarters of a point and to occur later in the year than previously expected.”
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