ALBAWABA - Economists expected the United States would enter a recession this year, while it will face high inflation until 2024.
According to a survey by the National Association for Business Economics (NABE), more than two-thirds of respondents believe that the inflation rate will remain above 4 percent at the end of this year, 2023.
Economists raised their expectations, by a slight percentage, that the Federal Reserve would succeed in reducing inflation while avoiding recession, as the percentage of respondents was 27 percent in August 2022 and rose to 30 percent in March 2023.
"Economists expect US #recession, above-target #inflation this year," @AFP reports on @nabe_econ Economic Policy #Survey results, out today: https://t.co/j4FhVDrOau— NABE (@nabe_econ) March 27, 2023
Only 5 percent of the respondents believed that U.S. is witnessing a recession in the current period, compared to 19 percent who believed that in the previous economic poll.
The U.S. Federal Reserve raised interest rates by 4.75 percentage points in an attempt to curb rising inflation, which last year reached its highest level in decades.
Data from the United States Bureau of Labor Statistics showed that the annual inflation rate in the U.S. slowed to 6 percent in February, the lowest level since September 2021, in line with market expectations, and compared to 6.4 percent in January.