The Atlanta Federal Reserve's GDPNow forecasting model, a closely watched indicator of economic growth in the United States, has revised its projections for the first quarter of 2025. As of February 5, 2025, the GDPNow model estimates a growth rate of 2.9%, down from the previous projection of 3.9% for the same period.
This revision reflects a more tempered outlook for the U.S. economy as it enters the new year. While the forecast still indicates positive economic expansion, the reduced growth rate underscores a mix of potential headwinds and uncertainties in the early part of the year. The adjustment from 3.9% to 2.9% suggests that the economic recovery may be facing more challenges than initially anticipated at the start of the year.
Economists and market observers will now be keenly watching subsequent updates from the Atlanta Fed GDPNow model, alongside other economic indicators, to gauge the evolving trajectory of the U.S. economy. The change serves as a cautious reminder of the complex dynamics at play in the current economic landscape, setting the stage for strategic planning and policy considerations in 2025.
