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US gross domestic product (GDP) growth has bounced back from the worse of the recession, but it still remains about 2 per cent below the trend-line from before the recession occurred, according to ‘US Economy in a Snapshot’, a monthly publication put out by the Federal Reserve Bank of New York.
Part of the reason why GDP has not rebounded more fully lies in what is being called the ‘Great Resignation’, i.e., people who left the workforce during the pandemic and have not returned.
The labour force participation rate–which combines those who have job and the unemployed who are looking–has not fully rebounded. A smaller share of the labour force working will typically translate into a smaller GDP. When or if these potential workers return to the workforce will have a big effect on the future evolution of the economy and public policy, the publication said.
US GDP growth has bounced back from the worse of the recession, but still remains about 2 per cent below the trend-line from before the recession occurred, says a monthly publication by the Federal Reserve Bank of New York. Part of the reason why GDP has not rebounded more fully is because people who left the workforce during the pandemic have not returned.
Inflation remains a concern as well. During the aftermath of the pandemic recession, a lot of services industries were hindered by the need for greater in-person contact. Thus, while consumer spending on both goods and services has bounced back, the bounce-back has been bigger for goods.
In the area of international trade, imports have bounced back, while exports have not.
Fibre2Fashion News Desk (DS)
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