December 5, 2018

2.7% GDP growth is forecast for 2019, slightly lower than in 2018

Momentum from strong employment and economic growth in 2018 will continue next year as consumer and business confidence remain high. The strong economy will support interest rate hikes in 2019, leading to gradual, moderate increases in long-term rates. However, inflationary pressure from a surge in wages or higher import prices due to tariffs is a potential concern. If markets reevaluate inflation risk, bond rates will rise more sharply than expected, likely reducing debt capital and foreign capital inflows (due to a stronger dollar). Slowing growth in China and Europe also poses risk, but the U.S. economic outlook is generally positive for next year. Learn how to be in an advantageous position next year by exploring CBRE’s 2019 Economic Outlook Report.

Key Economic Metrics Accelerated in 2018

2019-Outlook-FIG01

Source: U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, U.S. Federal Reserve Board, CBRE Research, CBRE Econometric Advisors, November 2018.

U.S. Outlook by Sector

Economy

Capital Markets

Office/Occupier

Industrial & Logistics

Retail

Multifamily

2019 U.S. Real Estate Market Outlook

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