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'Going to be a tough year' | Economists give bleak outlook for 2023

The U.S. economy went through ups and downs in 2022, and economists weigh in on what they expect to see in 2023.

TEXAS, USA — The Conference Board's 'Global Economic Outlook' reports that the economic outlook for the United States for 2023 has deteriorated under the weight of high inflation rates and rapid monetary tightening. 

In 2022, the U.S. economy was hit with supply chain shortages, inflation, and interest rates on homes skyrocketing.

But Central Texas realtor Blake Lufburrow believes things will likely get better in the housing market next year. .

"The adjustment we've seen over the last few years has been a shock and we as realtors have had to adjust," said Lufburrow. 

"The shock of interest rates shooting up in late 2022 has kind of slowed down as interest rates are slowing coming down and we hope this will continue in 2023."

As for the rest of the economy, Texas A&M University economist Robert Tennant said 2023 will likely be bad for the economy and everyone should prepare for a possible recession.

"Sources tend to show that 2023 is going to be a tough year and quite possibly tougher than 2022," said Tennant. "Inflation will continue to rise and minimum wage won't change. I wish I had better news about 2023 but there isn't any."

Tennant isn't the only expert who thinks this way.

JP Morgan reports they expect the U.S. economy to expand at a muted 0.5-1% pace in 2023, as measured by real GDP.

Another expert, Rob Perryman with the Perryman Group, says there will be a recession in 2023 but not as bad as some are predicting. 

"I think Texas and Central Texas is well positioned to weather any disruptions that we do have," said Perrman. "I think you're going to see an economy that will do reasonably well, particularly have some mobility for the end of the year, and probably slow down some during the first half." 

While it's impossible to predict the future, both experts recommend people put money aside in their savings and always be prepared for what's to come.

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