Resilience of US Economy and Outlook for Commercial Real Estate

Despite predictions of a recession in 2022, the US economy has shown resilience. CBRE has moderated its recession call but expects weaker growth in Q4 and Q1. Factors contributing to the economy's resilience include the impact of the CHPS Act and the IRA Act in boosting manufacturing and construction activity, prompt action by the Fed and FDIC in stabilizing the banking sector during times of stress, fiscal stimulus from ballooning government deficits, and consumers shielding themselves from rising interest rates through low mortgage rates. However, rising interest rates and oil prices could still pressure the economy.