A handful of financial analysts predicted that the US economy would enter into a recession either in 2023 or 2024. The recession predictions were made by leading global banks like JP Morgan and Standard Chartered, among others. However, the US economy dodged a recession in 2023 and is now looking at the prospects of 2024.
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The Red Sea tensions, the Israel and Palestine conflict, and the Russia-Ukraine war are raging again in 2024. The global conflicts are only being escalated with no signs of cooling down and the developments could affect the US economy that could eventually invite a recession.
US Economy Could Avoid a Recession in 2024
Despite the ongoing developments, financial analysts are increasingly sure that the US economy will avoid a recession in 2024. The optimism comes after the Federal Reserve brought down inflation from 6.5% to 3.1% in the last 15 months. Inflation in the US is cooling down but is yet to come under control below the 2% mark.
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In addition, consumer spending is at its highest as the Christmas holiday season saw a 2% increase in spending. Moreover, data shows that the supply chain across the country remains intact with labor shortages easing in the US. Both small and big companies reported no shortage of input materials and this is the best reading since the pandemic era.
All these positive developments are making financial analysts sure that the US economy will dodge a recession this year. Therefore, 2024 could be a safe year for the stock market, gold, oil, and commodities, as the US economy might avoid a recession.
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Read here to know how high gold and oil prices could reach this year in 2024 delivering profits to investors. The US dollar is also strengthening against other local currencies making the American economy more stronger.
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