Despite threats, US economy continues to grow
Although economists predict a return to growth for the rest of 2022 based on the strength of the job market and consumer spending, the U.S. economy shrank in the first three months of the year, and is facing inflationary threats and rising interest rates.
Businesses had built inventories aggressively ahead of last year’s holiday shopping season, when they feared pandemic-related supply shortages, so they restocked more slowly at the start of 2022, denting GDP by 0.8 percentage points.
Gross domestic product declined 1.4% on an annualized basis in the first quarter since the pandemic hit in 2020, but economists say that's not a sign of recession.
In a year when rising food, energy and other essential prices will be a major theme in mid-term elections this year, that may be of little comfort to President Joe Biden and Democrats.
29 April 2022