Overheard at METALCON
Economist Outlook: Navigating Complexity in 2026
Flat growth, persistent tariffs, and workforce pressures shape a more complex—not collapsing—economic outlook.

Economist Alex Chausovsky discussing economic policies surrounding construction at METALCON
Economist Alex Chausovsky describes 2026 as a year defined less by uncertainty and more by complexity. While the U.S. economy remains dominant—holding a longstanding 26 percent share of global GDP—restrictive interest rates are expected to keep growth relatively flat. Chausovsky stresses that the U.S. is not in a recession, nor heading toward one, despite elevated pessimism among CEOs.
Tariffs continue to influence pricing, with about 37 percent of tariff costs passed to consumers and 9 percent absorbed by companies, though the overall economic effect is limited and slow-moving. Chausovsky urges businesses to remain disciplined: retain employees, budget 3 to 4 percent cost-of-living increases, improve supplier communication, and adopt diversified pricing strategies.
His core advice for 2026: “Maintain profitability and make sure you have money to reinvest into the business.”
He warns that workforce shortages could intensify by 2027 without progress on legal immigration, making talent retention essential for long-term stability.
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