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NYC Economic Recovery to Lag Until 2025 Despite Revenue Growth

  • City’s independent budget office expects $3 billion budget gap
  • Wall Street profits, residential real estate sales up
New York City Mayor Eric Adams

New York City Mayor Eric Adams

Photographer: Jeenah Moon/Bloomberg

New York City Mayor Eric Adams faces a longer-than-expected Covid recovery with a nearly $3 billion budget gap next year and a labor force that isn’t expected to reach pre-pandemic levels until 2025, the city’s Independent Budget Office said in its latest economic forecast released Tuesday.

Rising tax revenue could mitigate some of the pain but Adams will be forced to make tough choices over balancing the budget without the billions of federal aid that has masked much of the city’s underlying fiscal uncertainty, the IBO said.