TAMPA, Fla. — As the financial markets prepare to close out 2023, there’s concern about what the economy may have in store in 2024.

Many small business owners in the Bay area share those concerns.

Fears of a recession have cooled recently, thanks to slowing inflation, a strong labor market and the likelihood the Federal Reserve will cut interest rates in 2024.

What You Need To Know

  • Fears about a recession in 2024 have cooled recently thanks to slowing inflation, a strong labor market and the possibility of interest rate cuts in 2024

  • Tampa and St. Petersburg have seen a record growth in population and tourism in recent years, which could help insulate some businesses from an economic downturn

  • Small businesses will likely make measured decisions on spending with uncertainty in the economy expected in 2024

  • RELATED: Con­gres­sional Budget Office expects inflation will fall to 2.1% in 2024

But the possibility of an economic downturn still has businesses on edge, especially small businesses that rely heavily on local foot traffic.

Alexis Muellner, editor of the Tampa Bay Business Journal, says Tampa and St. Petersburg both possess strong small business sectors, and he expects that will be measured closely in spending decisions as 2024 begins.

“Small business owners are probably looking at the tea leaves and trying to figure out how do I plan for that,” Muellner said. “What do I need to think about in terms of investment in capital, material, equipment, people, adding positions and things like that?”

“And you know we have had some resiliency because of the kinds of growth that we’ve seen that continue here,” he said.

Growth in the Tampa area has included not just population, but also tourism, with Tampa reporting record visitor numbers in 2023.