Economists expect US recession, above-target inflation this year
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The United States will likely enter a recession in 2023 and face high inflation well into 2024.
PHOTO: AFP
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Washington - The United States will likely enter a recession in 2023 and face high inflation well into 2024, a majority of economists predicted in their response to a semi-annual survey.
More than two-thirds of respondents to the National Association for Business Economics (Nabe) Policy Survey also see inflation remaining above 4 per cent
The survey summarised the responses of 217 Nabe members, and was conducted between March 2 and March 10, the organisation said in a statement.
The US Federal Reserve has raised rates 4.75 percentage points in a bid to tackle rising inflation, which reached its highest level in decades in 2022.
Price rises slowed slightly to an annual level of 6 per cent in February, which is well above the Fed’s long-term target of two per cent.
Amid the gloomy economic forecast, there was also some good news, with just 5 per cent of respondents believing the US is currently in the midst of a recession, “far fewer” than the 19 per cent in its previous economic survey, the Nabe president Julia Coronado said in a statement.
Economists also slightly raised the chances of the Fed achieving a so-called “soft landing” – bringing down inflation while avoiding a recession – from 27 per cent in August to 30 per cent in March 2023. AFP
