The Wisconsin Department of Revenue’s (DOR’s) latest economic forecast update indicates a mild recession from the last quarter of 2022 to the first half of 2023.
The forecast expects real gross domestic product (GDP) to grow by 1.8% in 2022, followed by a small decline of 0.2% in 2023 and a modest growth of 1.3% in 2024.
Inflation continues to be the largest downside risk to the economic outlook. The DOR’s forecast now projects the consumer price index (CPI) to rise 8.1% this year, 4.3% in 2023 and 2.7% in 2024.
In line with its October 2022 economic forecast update, the DOR expects the Fed will continue to hike rates but at a slower pace. See the report.