US Economy To Continue Growth In 2022: Suggest Economists

The US economy is facing critical challenges; the rising inflation levels and pandemic aftereffects have deterred it. However, the reports suggest that the US economy will continue its merry way throughout 2022. US News reports that the Conference board’s data showed a 0.7% increase in the economic index, which is 120.8 at present. The reports also displayed a 0.8% increase in the country’s health. The economists predict a slow but sure economic progress. The data has calmed the nerves of many political leaders as the uncertain situations loom large.

US Economy To Continue Growth In 2022: Suggest Economists

Economy Showing Signs Of Recovery

US News quoted Ataman Ozyildirim, senior director of economic research at the Conference Board; he said, “The US. LEI ended 2021 on a rising trajectory, suggesting the economy will continue to expand well into the spring. For the first quarter, headwinds from the Omicron variant, labor shortages, and inflationary pressures, as well as the Federal Reserve’s expected interest rate hikes- may moderate economic growth. The Conference Board forecasts GDP growth for Q1 2022 to slow to a relatively healthy 2.2%; still, for all 2022, we forecast the US economy will expand by a robust 3.5 percent- well above the pre-pandemic trend growth.”

Many Sectors Have Faced Worker Shortages

The US economy witnessed rapid growth in 2021. However, the economists predict an initial dip in the economy due to the spread of Omicron throughout the country. The economy faces staff shortages in various sectors and insufficient supply due to a record rise in inflation levels. The economic downturn has affected the stock market. US News reports that Netflix and Peleton suffered huge losses recently, dropping by 20% and 24%, respectively. The volatility in the stock market is predicted but is likely to settle as time proceeds. Several investors have seized the golden opportunity of acquiring the stocks during this dip.

The US economy has also been primarily affected by the closure of small and medium businesses after the recent virus wave. The increasing unemployment levels have imbalanced the economy significantly. The experts suggest that specific markets will be more affected during the price fluctuation. The government authorities need to be ready with alternatives to counter future debacles.