The US economy contracted by 0.4 percent in the first quarter of 2022 compared with the previous quarter (annualized 1.4 percent). However, this was mainly due to the fact that exports declined significantly.
he sharp rise in inflation in 2021 in many advanced economies was not anticipated to this extent by many households, professional economic analysts or financial market participants.
The global economy is being hit hard by Russia’s invasion of Ukraine and the resulting surge in energy prices.
Against the backdrop of the omicron wave and continuing problems with international supply chains, the global economy lost further momentum at the beginning of the year.
One year has now passed since Joe Biden was inaugurated as US President. He has been able to achieve some of his economic policy goals during this time – such as passing the major aid and stimulus package in March 2021 or getting Congress to approve infrastructure renewal in November. But recently, Joe Biden has also had to take a lot of economic criticism – some blame his expansionary fiscal policy for higher inflation, for example.
At the beginning of the current year, the U.S. economy is now likely to grow less dynamically. Monetary policy will gradually become less expansionary in the face of higher inflation and continued economic recovery.
In October and November, the US economy seems to have regained some momentum.
Only moderate economic growth
In the fall, the U.S. economy hit the brakes.
I expect that the Japanese economy will grow only moderately in 2021.