🇺🇸 U.S. GDP & Unemployment Forecast – Mid 2025 Outlook

As we move into the second half of 2025, economic indicators suggest the U.S. is on a moderate growth path, while the labor market shows early signs of cooling.

📉 GDP Growth Forecast:

After strong consumer activity in Q1 and Q2, GDP growth is expected to slow slightly, landing around 1.6% to 2.1% for Q3 and Q4. Contributing factors:

Slowing consumer spending as savings dwindle

Higher borrowing costs still weighing on business investment

Cautious Fed policy despite rate cut discussions

Still, there's no sign of a sharp downturn — indicating the "soft landing" scenario may be playing out as hoped.

👷‍♂️ Unemployment Trends:

The U.S. unemployment rate is projected to rise gradually to 4.3%–4.6% by the end of 2025. Reasons include:

Layoffs in interest rate–sensitive sectors like real estate and finance

Slower hiring in tech and retail

Fewer job openings as demand stabilizes

📊 What It Means:

The economy is not overheating, but not crashing either

The Federal Reserve may cautiously lower interest rates if inflation continues to ease

Investors and businesses should prepare for slower, but steadier growth through the rest of 2025

🗓️ All eyes now turn to the upcoming BEA GDP report and BLS monthly jobs data to confirm these projections.

#USEconomy #GDPForecast #UnemploymentRate

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