The outlook for America’s economy just got a little rosier. Survey results released Monday from the National Association for Business Economics said that the economy is likely to grow 2.2%, after adjusting for inflation, in 2024. A previous survey from the association in November predicted just a 1.3% growth.
Although interest rates remain high, household spending and the job market have stayed steady, contributing to an improved outlook for the remainder of the year. A wide range of other factors, including government spending, contributed to the improved forecast, said Ellen Zentner, president of NABE and chief U.S. economist at Morgan Stanley.
Additionally, economists have doubled their estimates for how many jobs the U.S. will gain this year. However, the total number will still probably be down from the prior year.
More than 40% of survey respondents believe high interest rates are the biggest risk to the economy, although most believe that rate cuts would start to occur mid-year. The Federal Reserve has also stated that it will likely cut the rates multiple times this year.
