CUNA Releases October Economic Update

FOR IMMEDIATE RELEASE   
November 15, 2022
Washington, D.C.

CUNA Senior Economist Ligia Vado discusses an overview of third-quarter findings and end-of-year projections in the October 2022 CUNA Economic Update.

Highlights from the most recent update include:  

• Economic growth predictions: Vado projected that the economy will grow 0.3% in 2022 and no growth in 2023. 
• Yield curve inversion:  The inversion of the yield curve since July signals a recession within 6 to 12 months. CUNA forecasts a ‘relatively mild’ recession in the first half of 2023.  
• ‘Pressure’ on credit union margins: Increased interest rate risk, higher operating expense, reduced consumer spending and lower levels of income from mortgage refinancing will affect bottom-line growth.  

“Members’ healthy financial conditions is one of the most important reasons why, if indeed there is a recession next year, its impact on credit unions will be much less severe.”  – Ligia Vado 

Credit union forecasts: 

• Loans outstanding are predicted for an 18% increase by the end of the year, the strongest in over 35 years. 
• Savings growth will be 3.5% in 2022, among the slowest in the last 40 years. 
• Record low savings growth and historic loan growth resulted in lower credit unions liquidity levels and challenges.  

Vado is a Senior Economist for Credit Union National Association (CUNA). She has over 20 years of economic and financial policy research experience. Vado specializes in risk, insurance and mortgage markets. Vado has been quoted by NerdWallet, PYMNTS.com and Telemundo, among other outlets.  

Please contact Paula Morales (pmorales@cuna.coop) to set up an interview with CUNA Senior Economist Ligia Vado. 

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About CUNA:           
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 130 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.

CONTACT:          
CUNA Communications        
strategiccommunications@cuna.coop