According to some analysts, the gains in the stock market reflect growing confidence that the economy will avoid the recession that many had feared earlier in the year and instead come in for a 'soft landing', followed by a gradual increase in the business activity.

(A) that the economy will avoid the recession that many had feared earlier in the year and instead come
(B) in the economy to avoid the recession, what many feared earlier in the year, rather to come
(C) in the economy's ability to avoid the recession, something earlier in the year many had feared , and instead to come
(D) in the economy to avoid the recession many were fearing earlier in the year, and rather to come
(E) that the economy will avoid the recession that was feared eariler this year by many, with it instead coming

Meaning :

Analyst Said : Gains Reflect confidence . Confidence that Economy with Avoid recession. A recession that was feared by many but come soft with increase in business activity.

Sentence Structure :

According to some analysts, the gains in the stock market reflect growing confidence (Clause - Gain : Subject, Reflect - Verb)
That the economy will avoid the recession, (clause - Economy: Subject, Will avoid : Verb )
that many had feared earlier in the year and instead come in for a 'soft landing', followed by a gradual increase in the business activity. (clause That (Recession) : Subject, had Feared and had come verb)

Second clause modifies "Confidence" and Third clause modifies Recession.

Error Analysis :

1. Use of "that" - Usually That introduces clause (S + V), ( when lot of action is happening in small part of sentence GMAT always prefer Clause instead of Phrases ) As per above structure analysis, we have full clause after every occurrence of that and hence Use of that is correct.

2. Use of Will : Any future prediction need Use of simple future hence use of Will is correct.

3. Use of Past perfect Had : Is fear still exist ? No, It was expected / Feared by many but that fear is not there at the time of analyst making that statement. Analyst made that sentence in past and they talked about "Fear" their past event - So Use of "HAD" is not incorrect.

4. Modifiers : there is not misplaces or dangling modifiers, clauses introduced by "that" logically modifies its preceding noun.

So sentence is correct

Option B,C,D can be eliminated based on the absence of "that"
There are other issues as well in Option B,C and D, such as Incorrect usage of "Rather or Instead"

Let's analyse Option E (only option with "That")
that the economy will avoid the recession - Correct
that was feared eariler this year by many - Simple past tense, that means, when analyst made that statement Fear was in existence that means analyst statement in void. this part changes the intended meaning - incorrect
with it instead coming - Adverbial phrase acting as modifier, what this guy is trying to modify, Recession or economy not clear.

Thank you for posting the explanation. Could you please explain the part on why "that was feared earlier" wrong in E?

and instead is OK? is "and" not redundant?

Why is it said that to avoid is not parallel with to come

only reason i rejected a was because of use of past perfect tense, i was not able to find other event occurring in past to justify the use of past perfect .

Thank you for posting the explanation. Could you please explain the part on why "that was feared earlier" wrong in E?

There's no such thing as a silly question.

The subject of instead come is the economy. Just watch out for the will in front of avoid though.

... the economy will (a) avoid the recession that many had feared earlier in the year and (b) instead come in for a 'soft landing'...

If we didn't have a will there:

... the economy (a) avoids the recession and (b) comes in for a 'soft landing'...

According to some analysts, the gains in the stock market reflect growing confidence that the economy will avoid the recession that many had feared earlier in the year and instead come in for a 'soft landing', followed by a gradual increase in the business activity.

(A) that the economy will avoid the recession that many had feared earlier in the year and instead come
(B) in the economy to avoid the recession, what many feared earlier in the year, rather to come
(C) in the economy's ability to avoid the recession, something earlier in the year many had feared , and instead to come
(D) in the economy to avoid the recession many were fearing earlier in the year, and rather to come
(E) that the economy will avoid the recession that was feared earlier this year by many, with it instead coming

AjiteshArun
The correct choice A is again:
According to some analysts, the gains in the stock market reflect growing confidence that the economy will avoid the recession that many had feared earlier in the year and instead come in for a 'soft landing', followed by a gradual increase in the business activity.

The 2nd that is the essential modifier of 'recession'. What if someone think (apart from meaning issue) that 'come' and 'fear(d)' are parallel each other because they're connected with 'and'?

Hi TheUltimateWinner,

It's really hard to read the sentence that way, because "many... had come in for a soft landing" doesn't seem to make any sense in this context.

More generally, you will face similar issues in many, many questions. The only thing we can do in such situations is read the question carefully.

Do you suggest that it is important to have a comma after the word 'year' to make the sentence more readable?

In option A, "AND instead come" what is parallel to what ?

Hi Akshay, come is parallel to avoid.

...the economy will avoid...and instead come....

Instead doesnt break the parallelism?

Hi Akshay, come is parallel to avoid.

...the economy will avoid...and instead come....

Hey guys,

can I assume in this one that the "will" in "will avoid" carries over to "come" making it an implicit "will come"?

Cheers
Rudolf