Citigroup Predicts Delayed Recession: Q4 2023 Now the Expected Target

Is the recession finally arriving? Citigroup has revised its economic outlook, offering a new perspective on the timing of a potential downturn. Instead of earlier predictions, Citigroup now forecasts a delayed recession, anticipating the U.S. economy to enter a recession in Q4 2023. This shift in timeline comes amidst evolving global economic conditions.

Citigroup raised its 2025 global economic growth forecast to 2.4%, from 2.2% expected earlier, and now expects the U.S. economy to tip into recession in the fourth quarter of 2023. This adjustment reflects an evolving economic landscape and stronger-than-anticipated performance in key global regions.

What's driving this delayed recession forecast? Citigroup raised its 2025 global economic growth forecast to 2.4%, citing solid performance in the United States, euro area and China, and also pushed out its recession prediction. The resilience of these major economies has provided a buffer against immediate economic contraction.

Furthermore, Citigroup raised its 2025 global economic growth forecast to 2.4%, citing “solid” performance in the United States, euro area and China, and also pushed out its recession outlook, highlighting the interconnectedness of global markets and the impact of robust performance in key regions on the overall U.S. economic trajectory.

Owing to the recovery noted, Citigroup has pushed back its recession forecast. It now expects the U.S. economy to step into recession only in the fourth quarter of 2023. This revised timeline provides businesses and individuals with additional time to prepare for potential economic challenges.

Stay updated on the latest economic forecasts and prepare for the potential impact of the delayed recession predicted by Citigroup in Q4 2023. We will continue to monitor the situation and provide updates as they become available.