Despite several headwinds in 2022, the U.S. economy still has considerable momentum, though there are reasons for concern according to an annual report from CoBank. The 2023 outlook report analyzes several factors shaping agriculture and other sectors that serve rural communities throughout the country.

According to the report, inflation above 5% has never been stifled without a recession, due to this, CoBank leaders say the U.S. economy will steadily soften through the first half of the new year, ushering a brief and modest recession. This follows what is expected of the global economy. After two years of a robust, pandemic-driven economic rebound, the global economy is expected to sputter in 2023.

As Russia continues to invade Ukraine, hindering massive amounts of agriculture and energy output, impacts will continue to be felt around the world. However, consumers are still spending aggressively, and corporate profit margins have hit record levels despite high inflation.

Read more on 2023 economic predictions here.