Here are 8 reasons why the US won't be hit with a recession in 2023, according to Goldman Sachs.

According to Goldman Sachs, there's a 35% to 40% chance of a recession in the next 12 months. While that's unusually high, it's still far below the 63% probability that economists surveyed by The Wall Street Journal have forecasted. Goldman Sachs' strategists still believe a "soft landing" is likely.

Here are 8 reasons why the US won't be hit with a recession in 2023, according to Goldman Sachs.

1. Jobless claims remain remarkably low, and strong non-farm payroll numbers don't suggest that a recession is on the horizon, though both have softened.

2. The labor market is cooling, but a reduction in job openings is "much less painful" than an increase in layoffs and should be seen as a positive sign for the labor market.

3. Layoffs have been relatively small and confined to the technology sector.

4. Workers who keep their jobs will enjoy positive inflation-adjusted wage growth of 2.5% over the next 12 months.

5. A two-percentage-point drop in core inflation next year is likely. Goods will lead core inflation to decelerate in 2023.

6. Long-run inflation expectations are in check. That means a dreaded wage-price spiral where inflation lingers for years is unlikely.

7. US GDP grew once again in the third quarter.

8. US real GDP growth will likely surpass 1% and higher than consensus.