(The Center Square) – Seattle’s economic forecast improved from a pessimistic view in April after anticipated blows from tariffs were less than expected, but the city still has a $143 million budget deficit

The Seattle Office of Economic and Revenue Forecast’s August baseline forecast anticipates a total 2025-26 general fund revenue increase of $62.8 million, excluding grants and transfers. Seattle’s 2025 general fund revenue is expected to total $1.63 billion.

Part of the improved outlook comes from national recession fears cooling down. Economists were surveyed by The Wall Street Journal in April, with findings showing a 45% probability of a recession in the next 12 months. In July, that probability dropped down to 33%.

Seattle Chief Economist Jan Duras said the optimistic outlook i

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