• Thu. Apr 25th, 2024

Economy set for a Stable Year with Key Drivers: Consumer Spending and GDP

BySamantha Nguyen

Apr 4, 2024
NRF reports economy is “solid” despite slowing growth rate

Despite predictions of slower growth in GDP and retail sales, the economy is expected to continue performing well for the remainder of the year, according to Jack Kleinhenz, Chief Economist of the National Retail Federation. He expressed confidence in the economy’s foundation, stating that consumer spending is a key factor in the ongoing recovery.

According to NRF’s April Monthly Economic Review, retail sales are projected to grow between 2.5% and 3.5% in 2024, which is slightly slower than the pre-pandemic 10-year average of 3.6%. However, this growth aligns with overall economic growth that is expected to be modest but consumer spending should remain strong, supported by slowing inflation and positive job growth.

GDP adjusted for inflation is forecasted to grow around 2.3% year over year in 2024. While this rate is slightly slower than the previous year’s growth of 2.5%, it is still considered robust enough to sustain job growth and consumer spending. Consumer spending is expected to increase by about 2%, a slight decrease from the previous year’s 2.3%.

The NRF noted that inflation has decreased significantly due to various factors including moderating wage growth, supply chain improvements and higher interest rates. Despite a slight uptick in prices at the beginning of 2024, Kleinhenz anticipates inflation easing down to 2.2% year over year by the end of the year

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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