Salt Lake City — The Kem C. Gardner Policy Institute today presented the 37th Economic Report to the Governor to the governor’s office at the 2025 Economic Outlook & Public Policy Summit hosted by the Salt Lake Chamber. The report highlights the resilience of the U.S. economy in 2024 and forecasts slowing, but not stalling, economic activity for 2025.

“Yet again, despite some dire predictions of higher interest rates forcing a hard landing, the remarkably resilient U.S. economy flew high in 2024 as post-pandemic economic normalization continued,” said Phil Dean, chief economist at the Gardner Institute and co-chair of the Utah Economic Council. “Entering 2025, the economy faces price uncertainty on various fronts. Continued sticky inflation and a large federal deficit add pressure for interest rates to remain higher for longer. The potential for immigration limitations, tariff increases, and increased energy production are other factors that could also impact prices in the coming year.”

Key highlights include the following:

U.S. Economic Growth – U.S. real (inflation-adjusted) GDP grew in 2024 at an estimated 2.7% clip, reflecting an expanding U.S. economy. Labor markets softened somewhat in response to higher interest rates and further normalization after massive economic stimulus but held up well overall. U.S. unemployment bumped up from very low levels (3.6% in 2023), ending at about 4.0% for the year.

Strong Utah Economy – Despite challenges, Utah’s elite economy generally continued performing at a high level. Utah’s nominal GDP surpassed $300 billion for the first time in history. Through three quarters of 2024, Utah’s real GDP growth rate led the nation at 4.6%. The state’s unemployment rate continued to rise from historic lows, but at 3.1% for 2024, it remained below the U.S. 4.0% unemployment rate. Utah’s job growth rate will likely continue to slow as housing prices will likely remain high until supply constraints are significantly eased.

The Utah Economic Council prepares the Economic Report to the Governor in partnership with the University of Utah’s David Eccles School of Business and the Governor’s Office of Management and Budget.

The Economic Report to the Governor and Summary Highlights are now available online.