Economists' Forecasts Proved Too Pessimistic as Pandemic Recovery Defied Predictions
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Economists underestimated inflation, the strength of consumers, and the labor market in 2021-2023 predictions.
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The pandemic and massive government stimulus made standard economic models ineffective at forecasting.
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Economists predicted recessions that didn't happen as consumers kept spending and the job market stayed strong.
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Inflation may not return to pre-pandemic lows due to ongoing factors like deficits and the green transition.
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Forecast uncertainty remains high as the economy responds differently than in past cycles.