How is Omicron Variant Expected To Impact U.S Economy Next Year?

How is Omicron Variant Expected To Impact U.S Economy Next Year

Even though the unprecedented Coronavirus pandemic hit the global economy so hard with sharply escalating prices and the surging cases of the fast-moving omicron variant, forecasters are cautiously optimistic about witnessing global growth in the upcoming year as the healthcare system is pretty well prepared to pivot and create different forms of vaccines. The scientists are analyzing pool data from around the world to understand the wave-like behavior of new coronavirus variants to minimize the impacts of successive Covid-19 waves on the economy.

The current inflationary climate has led towards the end of mortgage forbearance triggering the demand for rentals. The supply of homes will also remain an issue in the next year as it will be challenging for the U.S housing market to close its demand-supply gap of 6.8 million units. For the stock market, professionals predict a return to sobriety next year as the services sector has come back to considerably contribute to economic stability and growth. With the likelihood of the U.S workforce returning to its pre-pandemic norm, some of the changes triggered by Covid-19 are expected to become long-term fixtures of the labor market.

As far as inflation is concerned, it has so many facets of the economic landscape that has suffered from service-sector shutdowns and global supply chain demand to buffer escalating pressure on the global market. What’s more of a concern is how long it is going to take to fill the demand-supply gap for the global economy. With the net worth of U.S households getting substantially larger and the dwindling reserves of accrued savings by many U.S families, experts still hope that they could last long enough to stand firm against the inflationary pressures. With the economic projections reflecting markets that have been pricing in a trio of interest rate hikes for 2022, the bigger unanswered question is will this be the right amount of tightening for the pandemic economy, and to what extent will it bounce back next year?

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