The latest quarterly UCLA Anderson Forecast predicts a sluggish economy in 2024, followed by a return to normal growth rates in 2025. However, there is no immediate threat of recession for both the U.S. and California economies.
According to UCLA Anderson experts, the California economy continues to outpace that of the U.S., but potential risks lie in political and geopolitical factors. The forecast also notes that interest rates could potentially disrupt current economic expansion or be positively impacted by increased international immigration and onshoring of technical manufacturing.
On a national level, higher interest rates are expected to hinder growth in 2024. As inflation gradually decreases below 3% annually and the Federal Reserve shifts its focus away from aggressive rate increases, it is anticipated that economic growth will rebound at trend levels according to UCLA Anderson’s analysis.
This article was originally published on Connect CRE.
