U.S. Economy Set to Grow 2.2% in 2024, Defying Previous Predictions

According to a survey released on Monday by the National Association for Business Economics, the U.S. economy is expected to grow 2.2% this year, up from the 1.3% predicted in the prior survey. High interest rates were expected to slow the economy, but the job market and household spending have remained strong, leading to an optimistic outlook. Factors such as increased government and household spending have contributed to the improved economic forecast. Additionally, inflation has cooled, leading most forecasters to expect interest rate cuts by mid-June. However, the long-term effects of past rate hikes could still pose a risk to the economy, with 41% of respondents considering high rates as the most significant threat.

Optimistic Economic Outlook

The survey released by the National Association for Business Economics indicates a positive outlook for the U.S. economy, with expected growth of 2.2% this year, up from previous predictions.

Impact on Interest Rates

The survey suggests that despite expectations of high interest rates slowing the economy, strength in the job market and household spending have defied these predictions.