The economy defied warnings of disaster. Where is it headed in 2024?

Forecasters offered reasons for optimism but risks abound.

The U.S. economy averted disaster in 2023, achieving a major cooldown of inflation while steering clear of a recession.

Policymakers overcame stiff odds to glide the economy toward a "soft landing," but their task isn't finished. They aim to slow inflation further at risk of causing a downturn that could trigger mass layoffs.

Still, a sunny outlook prevails among economists. Experts widely expect the U.S. economy to slow but not shrink over the next year. That outcome would allow inflation to near normal levels while the country sustains economic growth.

"The hard part is over," declared a Goldman Sachs report last month.