returned to its pre-pandemic growth trajectory.
According to the first preliminary estimate released by the U.S. Bureau of Economic Analysis (BEA) last week, real GDP grew 2.1% in 2022, following a 5.9% increase in 2021.
Covid-19 put a dent in U.S. economic growth but, thanks at least in part to generous stimulus spending, it didn’t throw it off its trajectory.
But inflation is still high and the Fed’s efforts to bring it down by further tightening measures may cause a slowdown or even a recession this year.
With the labor market, private investment and consumer spending looking very robust though, there are also voices hoping that inflation can be reigned in without sliding into recession.