The Conference Board has projected a 2.3% growth in the U.S. real GDP for 2025, as part of its annual economic forecast. While this marks a stable recovery for the U.S. economy following a period of slower growth, the report underscores several key risks that could impact future performance.

One of the main drivers behind the forecasted growth is the continued strength in consumer spending, which has remained resilient despite inflationary pressures. Additionally, a solid labor market, with steady job gains, is expected to help sustain the economy in the near term.

However, economists at the Conference Board caution that potential geopolitical uncertainties, as well as ongoing tight monetary policies, could dampen growth prospects in the second half of the year. The global economy’s health, especially that of major trading partners, will also play a significant role in the U.S. economic performance.

In terms of inflation, the report indicates that price levels are expected to ease, although inflationary pressures may persist in certain sectors like housing and energy. Still, the economy’s moderate expansion reflects a transition toward more balanced economic growth in the coming year.