Indiana economy predicted to outperform national economy in 2025

INDIANAPOLIS (WISH) — According to a new forecast by the Indiana University Kelley School of Business, the Indiana economy is on a sustainable path to growth.

Experts put together an economic outlook for 2025 that said 2024 had stronger than expected output, and considering the stronger output and improvements in inflation, Indiana is on track to “return to equilibrium” in 2025.

Phil Powell, an IU Kelley School of Business economist, contributed to the report.

“We are forecasting a pretty strong economy in 2025 for the nation,” Powell said. “And our state is going to perform better than the rest of the country.”

Powell says Indiana is projected to do well thanks to new business sector growth.

“So, with interest rates coming down, this is helping manufacturing in Indiana, and that’s going to disproportionately drive our growth relative to the rest of the nation,” Powell said.

Powell said his research has not shown a correlation between what political party is in the White House and economic growth.

“When you look at the history of economic performance in the United States, there is really no statistically significant difference in who is in office,” Powell said. “So, when we build our economic forecasting models, it’s independent of who is going to win and lose an election.”

The lower cost of living fueling consumer purchases also helps Indiana’s economic growth.

Brian Vander Schee, an IU Kelley School of Business marketing professor, contributed to the report.

“We’ve seen that there have been personal savings or an accumulation of wealth kinda saved up as a post-Covid period, but people continue spending as consumers, which helps the economy continue to grow, and we project that will continue into the new year,” Vander Schee said.

The Kelley School of Business will publish a detailed report of its 2025 economic outlook in December.
You can find that infomration in the Indiana Business Review.

For now, you can find more information about the report here.