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Economic Forecast For 2025 And Beyond: Growth With Continued Inflation


Published on 2024-12-30 05:21:15 - Forbes
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  • The economy will grow but at a slower pace than 2024. Inflation will remain above the Fed's target, with Trump's policies limiting production while stimulating spending.

The article by Bill Conerly for Forbes, published on December 30, 2024, provides an economic forecast for 2025 and beyond, predicting continued economic growth alongside persistent inflation. Conerly outlines that the U.S. economy will likely see a GDP growth rate of about 2.5% in 2025, driven by consumer spending, business investment, and government expenditure. Despite this growth, inflation is expected to remain above the Federal Reserve's target, hovering around 3-4%, due to factors like supply chain disruptions, labor shortages, and rising commodity prices. The article discusses the implications of this scenario, including the Federal Reserve's potential response with interest rate adjustments, the impact on consumer behavior, and the challenges for businesses in managing costs. Conerly also touches on the global economic environment, noting that while some regions might recover faster, the overall trend suggests a world adapting to higher inflation rates. He advises businesses to focus on efficiency, pricing strategies, and supply chain resilience to navigate the economic landscape effectively.

Read the Full Forbes Article at:
[ https://www.forbes.com/sites/billconerly/2024/12/30/economic-forecast-for-2025-and-beyond-growth-with-continued-inflation/ ]