Home News Economic Forecast for 2025 and Beyond: Growth with Continued Inflation

Economic Forecast for 2025 and Beyond: Growth with Continued Inflation

December 31, 2024

by Bill Conerly
Forbes

The economic forecast for 2025 shows growth, but at a slower pace than 2024. Inflation will remain above the Federal Reserve’s target, with President-elect Trump’s policies limiting production while stimulating spending. The greatest risk is not a recession but limited production capability as immigration falls.

Economic Momentum Entering 2025

The United States economy has grown nicely through 2024. The last two quarters in particular grew faster than the long-run average, and the Atlanta Federal Reserve’s GDPNow estimate for the fourth quarter continues the above-average trend. Employment grew every month this year (though we don’t yet have December 2024 data).

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