The Chief Economist: 4Q2024 U.S. Economic Outlook
BGO’s 4Q2024 U.S. Economic Outlook highlights a resilient economy, defying recession fears with strong GDP growth, a tight labor market, and slowing inflation. Consumer spending, driven by rising incomes and easing interest rates, remains a key growth driver, while business and government investments have surged. Despite challenges in net exports, robust domestic demand reflects the economy's strength. On the supply side, productivity gains, technological advancements, and increased labor and capital investments have boosted output. The financial markets also performed well, with record-high asset values and resilient consumer balance sheets.
The report underscores the positive implications for the commercial real estate (CRE) market as interest rates begin to decline. Solid economic fundamentals and demand for space support a hopeful outlook for CRE, despite lingering supply concerns. Looking ahead to 2025, the analysis emphasizes a sustained economic expansion barring significant policy missteps or unforeseen shocks. With momentum on its side, the U.S. economy is well-positioned for continued growth, setting the stage for opportunities across markets, including CRE.
