Latest News
Ohio's CPAs express optimism about 2024 economy
Written on Jan 25, 2024
By Jessica Salerno-Shumaker, OSCPA senior content manager
Financial expert Mario Giganti, CPA, shared an economic outlook for 2024 during this week's Town Hall with a majority of Ohio's CPAs expressing optimism about growth in revenue and profits.
“Take care of the things that you have control over versus the items that you don't,” said Mario Giganti, CPA, senior vice president and shareholder at Captrust.
Giganti said there will always be strong opposing opinions and even opposing data that predict where the economy is headed, but it’s a better use of resources and time to focus on the areas you can impact.
The event, hosted by OSCPA President & CEO Scott Wiley, CAE, reviewed 2023, the likelihood of a recession, economic unknowns, and more. In a poll during the event, 55% of Ohio's CPAs were optimistic or extremely optimistic about growth in revenue and profits for the next 12 months. In a similar poll among Ohio's firm leaders, 90% expressed optimism about revenue and profit growth in 2024. Giganti said if he had asked that same question to clients months ago, he would have gotten more negative answers.
“If we see profit growth, then I think the areas that have been strong in the last 12 months will continue to be strong, because of the enhancement within the productivity sector,” Giganti said.
Headwinds that Giganti noted included consumer challenges such as high credit card balances and a disrupted housing market, along with election uncertainty. Tailwinds he mentioned were inflation-adjusted wage growth, productivity-fueled growth, and an uptick in government funding.
Shipping costs will most likely continue to impact businesses across the world, he said, as unrest worldwide will disrupt shipping routes and schedules.
“I believe, we are moving toward deglobalization,” Giganti said. “I think that the U.S. and North America are well set up to grab a large market share from this deglobalization.”
As attendees look to plan for the year ahead, he encouraged them to be mindful of spending and savings accounts.
“You should plot out a plan that says I've got five to 10 years of spending set aside and in interest-earning investments, and do not worry about the growth of those investments,” he said. “And let the rest of the money do what it's supposed to do, which is to grow over time. And the best way to do that is in some type of diversified stock portfolio.”