HomeLatest NewsDeutsche Bank anticipates US economy to steer clear of recession in 2024

Deutsche Bank anticipates US economy to steer clear of recession in 2024

Deutsche Bank’s Updated View on US Economy’s Outlook

Deutsche Bank Optimistic About US Economy

Deutsche Bank has revised its forecast for the US economy, expressing optimism that the country will avoid the recession that many had feared. The bank had previously predicted a mild recession, but now believes that the economy will stay on a narrow path, averting a downturn with minimal impact on the labor market.

Encouraging Economic Performance in 2023

Analysts at Deutsche Bank pointed to the impressive performance of the US economy in 2023, noting a balanced labor market and a decrease in core PCE inflation. They also highlighted the relaxation of financial conditions, which is expected to prolong these positive trends.

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Revised Projections and Economic Growth

Deutsche Bank’s revised projections now anticipate economic growth of 1.9% (Q4/Q4), a significant upgrade from the earlier estimate of 0.3%. They also forecast a slight increase in the unemployment rate to 4.1% over the next year, alongside a steady decline in inflation towards the Federal Reserve’s target.

Positive Outlook for the US Economy

Despite the possibility of short-term fluctuations, Deutsche Bank remains confident in its inflation forecasts, with core PCE and CPI expected to end the year at 2.2% and 2.6%, respectively. The bank’s more optimistic outlook reflects a favorable view of the US economy’s trajectory and potential for sustained growth.

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