• Sun. Apr 14th, 2024

Economic Recovery Set to Continue in 2024: NRF Chief Economist Predicts Modest Growth with Robust Consumer Spending

BySamantha Nguyen

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

The National Retail Federation’s Chief Economist, Jack Kleinhenz, stated that despite expectations for slower growth in GDP and retail sales, the economy is expected to continue performing well for the remainder of the year. Kleinhenz expressed confidence in the economy’s foundation, mentioning that consumer spending is a key factor in the ongoing recovery. He noted that the economy should continue to grow in 2024, although not at an exceptional rate.

According to the NRF’s April Monthly Economic Review, retail sales are projected to grow between 2.5% and 3.5% in 2024. While this marks a slowdown from the rapid growth seen during the pandemic, it aligns with the pre-pandemic 10-year average of 3.6%. Overall economic growth 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. This rate is slightly slower than the previous year’s growth of 2.5%, but 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. As a result, interest rates are expected to decrease

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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