Productivity is expected to rise at an annual rate of 1.9% over the next decade, a positive sign for the economy’s long-term health
Economists express growing optimism about the nation’s economic future, with the probability of a recession within the next year plummeting to 29% from 39% in January, according to a Wall Street Journal survey.
Moreover, experts upgraded growth forecasts, now expecting a solid 1.4% growth rate by the third quarter, compared to sub-1% forecasts earlier.
Despite concerns regarding higher-than-expected inflation, analysts anticipate stable interest rates for now.
Additionally, productivity is expected to rise at an annual rate of 1.9% over the next decade, a positive sign for the economy’s long-term health.
However, there’s a downside. Experts caution that a strong economy may present challenges in achieving the Federal Reserve’s 2% inflation target.
Some worry about the repercussions on economic growth if the Fed adopts more aggressive measures to curb inflation.