The second half of 2023 may bring a mild recession, but economists also predict a speedy recovery, according to an annual Greater Kansas City Chamber of Commerce Economic Forecast.

Recession may be coming because people are spending their stimulus money and draining some accumulated savings. Consumer demand may flag next year.

“The good news, and this is partly why the recession is sort of being engineered — inflation should come down,” said Frank Lenk, director of research services at the Mid-America Regional Council. “With a more stable price picture, the economy should begin to recover some of its mojo, but it’s going to take a year or so for that to happen.”

Lenk, who spoke at the virtual event along with Economist Chris Kuehl, co-founder and managing director of Armada Corporate Intelligence, expects construction to take the biggest hit from the 2023, but he said it will bounce back right away the following year.

Other areas expected to lose employment next year include state and local government, food services, retail trade, real estate and rental, health care and arts and entertainment.