Through much of 2022, investors braced for the potential onset of a recession in response to focused efforts by the Federal Reserve (Fed) to slow economic growth and curb inflation. While the economy slowed significantly, a recession has, to this point, been avoided.
As measured by Gross Domestic Product (GDP) growth, the economy in 2021 grew at an annualized rate of 5.9%, the fastest rate of growth in a calendar year since 1984. The economy slowed significantly in 2022, with GDP increasing at an average rate of just 2.1%. After being in negative territory in the first two quarters of 2022, the economy bounced back modestly in the second half of the year. Consumer spending and corporate profit growth proved resilient in a more challenging environment.
If the economy does go into a recession this year (2023), they don't think it will be severe.
https://www.usbank.com/investing/financial-perspectives/market-news/economic-recovery-status.html
Although it does appear that the economy was able to bounce back from dire circumstances in the second half of 2022 I wonder if the recent banking issues will recent this financial recovery and move the US back towards a recession. These indicators are encouraging as I feel like most news I hear wants to constantly talk about incoming severe recessions.
ReplyDeleteIt will be interesting to see how consumers will go about saving and spending money during the recession if it happens.
ReplyDeleteIt will be interesting to see how the economy develops in the upcoming year and whether the Federal Reserve's activities will have a favorable effect on inflation and economic growth.
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