CHARLOTTE, N.C. — As concerns over a potential recession continue to grow, a UNC Charlotte economist said North Carolina didn't experience a recession this year and might not see one next year, either.
John Connaughton, an economics professor at UNC Charlotte's Belk College of Business who is also the director of the North Carolina Economic Forecast, says the economy is likely to have grown by about 3.4% this year. That growth comes as some sectors shrunk in 2022.
The Federal Reserve is expected to roll out smaller interest rate increases this month to keep pace with inflation. Unfortunately, Connaughton doesn't see inflation slowing until well into 2023.
"Even when we start slowing price increases, the wages will ultimately need to catch up and may catch up by the end of 2023," he said. "There will be wage inflationary pressure for most of 2023."
Connaughton forecasts growth in 12 of the state's 15 economic sectors during 2023. The largest growth is expected in agriculture, mining and hospitality.
While Connaughton doesn't think there will be a recession next year, he says some households could feel economic pain. North Carolina's unemployment rate has risen recently and job growth is expected to slow next year. The state is expected to add 72,800 net jobs next year.
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