CoBank Releases 2023 Year Ahead Report
The U.S. economy still has considerable momentum and is not currently on the verge of recession, that according to CoBank's 2023 Year Ahead report. Despite that, economists have never been more pessimistic, and there are legitimate reasons for concern. Over the past half-century, inflation above 5% has never been tamed without incurring a recession.
Dan Kowalski, vice president of CoBank's Knowledge Exchange, says, "As financial conditions continue to tighten, we expect the U.S. economy will steadily soften through the first half of 2023."
After two years defined by a strong economic rebound from the pandemic, the global economy will sputter in 2023. Despite the global pandemic and a steady barrage of disruptive challenges, the U.S. agricultural economy has fared quite well for the last three years. However, in 2023 producers and related industries will begin to show financial strains. A relentless series of adversities, including skyrocketing production costs, steeply higher interest rates and weakening demand, will increasingly pressure farm income and margins.
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