The economy took a little dip. Its not expected to be long based on some of the projections by investment firms. We seem to have run into some issues of contraction (See below). I'm not sure what the big problems are nor what all of the solutions might be. What I can say is that I think we need to do more to attract investors in our communities. Foreign and domestic investment can make a difference. If we want to be on top of the world market we have to make our spot on the global supply chain the most lucrative. We also need to be an export oriented and innovative nation.
Reuters has a pretty good synopsis of how we are doing economically in the Q1-2022 US Economy Contracts Q12022
Things like less disposable income, lower exports (I hate this!!!! I just don't know why we struggle with bring back investment and exporting more. 😤), lower consumer sales, lower profits and a total of 9 out of 22 industries contract (Its not to be long term but its a crystal ball issue.). How the heck is petroleum and coal going down during an energy crisis?
(I must be not understanding something. I love clean energy and prefer it and think we should move there. A good plug and play energy system would allow us to beef up difference until the other industries fully develop. You see Europe starting up some of its coal factories again. While we should be exporting our oil and oil shale I believe that we could also more quickly develop our eco friendly renewable energies better while improving battery systems. Having a cost effective low carbon energy system will push all the other industries to capitalize on emerging technologies.🤷)
What is next?
No idea. I think the digital economy has grown substantially since COVID and I also think that 2023 will be an interesting year with potential growth periods for GDP and Digital GDP (Assuming we have the right growth policies and we settle our political differences). See Short Lived Shock 2020 and Not Out of Woods, You can gain some information from the Conference Board and Digital Transformation. (From a frustration all the Digital GDP numbers appear old. I wonder why no one seems to be tracking in real time like GDP.)
The information below is quoted from BEA Website There is also a full version at GDP First Quarter 2022
"Real gross domestic product (GDP) decreased at an annual rate of 1.6 percent in the first quarter of 2022, following an increase of 6.9 percent in the fourth quarter of 2021. The decrease was revised down 0.1 percentage point from the "second" estimate released in May. In the first quarter, there was a resurgence of COVID-19 cases from the Omicron variant and decreases in government pandemic assistance payments.
Profits decreased 2.2 percent (revised) in the first quarter, after increasing 0.7 percent at a quarterly rate in the fourth quarter.
Private goods-producing industries decreased 6.9 percent, private services-producing industries decreased 0.8 percent, and government increased 2.0 percent. Overall, 9 of 22 industry groups contributed to the first-quarter decline in real GDP."
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