The US economy will continue to face headwinds in the second half of the year from high inflation, but consultancy Oxford Economics still anticipates a soft landing amid a strong labour market and continued spending from US consumers.
Oxford’s lead US economist Oren Klachkin and senior economist Ahmed Abdelmeguid made their comments on the US economic outlook during a webinar on Thursday.
Klachkin said that despite the two consecutive quarters of contraction of the country’s gross domestic product (GDP), which is one technical definition of a recession, Oxford does not see the US falling into a recession and anticipates a relatively modest rebound in economic activity in the second half of 2022.
A soft landing, in economics, is a cyclical slowdown in economic growth that avoids recession.
Source: Hellenic Shipping News