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AGENCY TESTIMONY
Economic risks and future outlook for New York City
0:26:28
ยท
80 sec
Jacques Jiha outlines potential economic risks and future considerations that could impact New York City's financial outlook, while also noting some positive possibilities.
- Potential risks include:
- Tariff increases disrupting international trade and increasing prices
- Stricter immigration policies leading to labor shortages and price increases
- Reductions in government spending potentially slowing economic growth
- Tax cuts potentially increasing the country's budget deficit
- Possible positive factors:
- Tax cuts, increased deregulation, and increased oil and gas production may spur economic growth
- Productivity-enhancing investments could have positive effects
- These factors are not yet included in the current forecast but will be accounted for in the upcoming forecast to be released with the executive budget in early May.
Jacques Jiha
0:26:28
To conclude, I'm happy to report that we are managing our way through a profound humanitarian crisis without major disruptions to program or services, no layoff, and not a single cent in tax increases.
0:26:44
However, we are not out of the woods.
0:26:48
On top of the budget threats that I discussed earlier, there are risks on the horizon that could impact our economic outlook.
0:26:56
Notably, tariff increases could disrupt international trade and increase the price of goods and even strengthen the US dollar, which makes us less competitive and reduce exports.
0:27:09
Stricter immigration policies could create labor shortages and increase prices while reductions to government spending could weigh down economic growth.
0:27:20
Tax cut may increase the country's budget deficit which could cut out private investment.
0:27:25
On the other hand, tax cut, increased deregulation, and increased oil and gas production may spur economic growth, especially if coupled with productivity enhancing investment.
0:27:39
Because we released a preliminary budget days before the current administration took office, these factors are not baked into our current forecast.