TAMPA, Fla. — There are multiple ways to measure the economy and how successful it was in 2024, according to University of South Florida instructor of economics Michael Snipes.
“If we’re talking about measuring economic through GDP, Gross Domestic Product, that tends to be kind of the most common way to define and kind of measure the economy. And in terms of that, we did have pretty solid, pretty good economic growth. GDP was up, growth was good,” said Snipes.
He believes that, ultimately, the Fed's action with interest rates this year was pretty predictable and had a steadying effect.
However, 2024 was hard on consumers, too— with decreased purchasing power and inflation still hitting people hard regarding housing and groceries.
“For a lot of people, 2024 was going to be really kind of characterized by inflationary pressures,” said Snipes.
So what does 2025 look like?
Economists expect the first few months will be a bit rocky. That’s because, throughout history, economic uncertainty has always occurred during the transition into a new presidential administration.
“It’s really going to depend upon how much of the new administration, how much they’re able to implement, how quickly, they’re able to implement. So, really, 2025 is going to be pretty difficult to predict,” said Snipes.
Financial attorney Leslie H. Tayne echoed those sentiments.
“It’s normal when there is a new administration taking over for there to be a little bit of volatility…There’s always uncertainty with new administrations. It does take some time for new administrations to get their footing and to make adjustments and changes,” said Tayne.
A lot will depend on which policies succeed, but experts believe the economy will likely stabilize within a few months of 2025.
“If you’re a consumer or you’re new to budgeting, finance, or personal finance, understand that things do ebb and flow in the financial world.. keep in mind nothing ever happens overnight. So these things if you’re watching them, will play themselves out over a period of time,” said Tayne.
