UT Boyd Center Report Shows Recession Less Likely In Tennessee, But Economic Growth Will Slow

Although a mild recession might be on the horizon for the U.S., a new report today by the Boyd Center for Business and Economic Research at the University of Tennessee, Knoxville, shows Tennessee’s outlook is a little sunnier.

Officials said, "In the U.S., inflation-adjusted gross domestic product (real GDP) is expected to shrink by 2 percent in the first quarter of 2023 and by an additional 0.4 percent in the second quarter before recovering in the second half of the year. High interest rates, supply chain pressures, geopolitical instability and high inflation all contribute to the possibility of a recession. Overall, U.S. real GDP is expected to fall by 0.2 percent in 2023."

“We are more optimistic for the Tennessee economy as more people have moved to the state in recent years, which has provided a boost to economic growth,” said Larry Kessler, research associate professor at the Boyd Center and project director for the 2023 Economic Report to the Governor of the State of Tennessee.