Economists predict ‘mild recession’ as Arkansas gears up for 2023 legislative session

KUAR | By Wesley Brown / Arkansas Advocate

A mild recession and a holiday spending hangover. That’s what economic forecasters predict for 2023 as lawmakers head to the state Capitol in January.

Rising interest rates and persistent inflation will push the economy into a downturn, experts say, and those economic clouds could also cause the 94th General Assembly to consider any robust spending programs in light of a possible nationwide slowdown.

As Gov. Asa Hutchinson winds down his administration, he recently reported to lawmakers that Arkansas’ budget coffers are overflowing with $2.78 billion of reserve funding.

https://www.ualrpublicradio.org/local-regional-news/2023-01-04/economists-predict-mild-recession-as-arkansas-gears-up-for-2023-legislative-session

Photo Courtesy Gov. Asa Hutchinson/Arkansasadvocate.Com

Arkansas Gov. Asa Hutchinson (left) and Sen. Jonathan Dismang (R-Beebe) talk before Hutchinson presents his fiscal year 2024 state budget at the Nov. 10, 2022, meeting of the Legislature’s Joint Budget Committee. The budget projects a surplus despite forecasts of a mild recession in 2023.