U.S. Economy Defies Predictions of 2023 Recession with Strong Growth Despite High Inflation
• Economists widely predicted a recession in 2023, but strong economic growth of 3.1% defied expectations • Inflation spiked to high levels but has since retreated substantially without requiring high unemployment • The resilience of the economy is forcing economists to reckon with incorrectly gloomy forecasts • Old economic models did not serve as good guides for the unique circumstances • Economists have a history of getting predictions wrong, including not foreseeing the 2008 financial crisis