Deloitte Economic Forecast 2025: Few thoughts on inflation, borrowing, and economic growth

The economic projection indicates the U.S. is a net exporter of petroleum, consumer spending is rising and manufacturing/factory investment is high.  The report runs through a few scenarios and even provides a few projections into 2028. Beneficial is a discussion on the various potential impact of certain policies so you can understand some of the numbers behind options. You may read Deloitte Economic Forecast 2025 and 2026

A few things to think about for theoretical development...

Accelerating inflation and shrinking population: I'm wondering if improved productivity, human capital development, and enhanced infrastructure can counter population decline. There is also a significant presence of undocumented immigrants and that may impact population and productivity. You have to read the report because it’s a dicey issue and formulate your own opinion.

Higher cost of borrowing for businesses: The report indicates that the cost of borrowing will hamper some businesses. For the research on economic clusters, I'm working on I believe that cheaper small business and corporate loans could influence growth if offered for certain improvements. For example, one wants to attract small business to a place like Escanaba (modeling) for entrepreneurs that put up $100K in funds, are willing to local/start business in town, would have access to grants to improve store fronts and low interest loans to develop their downtown buildings. One might also provide for certain types of businesses a locality would like to add to a cluster (i.e. retail, food, events, etc. for QOL and seeding needed businesses). The advantage being that improving the building is a win-win no matter if the business is still functioning in 3 years or not, it improves interest and aesthetic appeal that adds visitors/shoppers for all businesses, and once you get an entrepreneur to move into an area they may start multiple businesses over time thereby increasing wealth in the future. Often even when they fail entrepreneurs try again in a few years because it’s a mentality and lifestyle so attracting them to a location where they can do some good and be retained is beneficial.

Expectation inflation will fall: Generally, inflation and the speed of the economy are related. However, one might consider the impact of new data structure, globalization of resources, taxes, etc. and its influence on inflation. One might wonder if it is possible to have timid inflation and yet still have growth According to Does Inflation Harm Economic Growth? it indicates that yes there are scenarios where lower inflation can increase growth. Creating those conditions as much as possible seems helpful. I was sort of thinking of a perpetual sustainable economy that adjusts to market conditions faster and ensures better fiscal management (in theory). Lower HQ Tax and Perpetual Development