The US economy went up 5.7% last year, its fullest pace for the last 18 years. However, Americans are still wary of the effects of high inflation currently surrounding the market.
US Economy Went Up by 5.7% in 2021
The US economy grew by 5.7% for 2021. This is due to an increase in consumer spending, exports, and private investments, according to the government.
Meanwhile, the US economy also grew by 6.9% in the fourth quarter alone. This is a remarkable feat considering the current outbreak of the Omicron variant across the United States.
However, many Americans are not happy with the developments. Even with the boost in economic spending, inflation continues to bedevil many US households. In fact, a recent Gallup poll showed that Americans are struggling with the effects of higher prices.
Poll Shows 79% Of Americans Expect Even Higher Prices in 2022
For the full year, U.S. GDP grew 5.7%—its fastest pace since 1984, but the American public remains split on whether economic growth will increase or not, according to a recent Gallup poll. 79% of Americans expect more price increases in 2022.
Meanwhile, the US inflation rate is currently at a 40-year high. Half of the respondents expect prices to increase by “a lot” more. This is the highest rate of pessimism among American households.
In fact, it beat the previous high of 75%, set in 2005. In a separate survey, about half of American respondents admitted that inflation already caused hardship to their households. This includes 9% who said inflation led to severe hardship.
Lower-Income Americans Hit Hardest
As usual, lower-income Americans bore the brunt of the pain caused by Inflation. Around 66% of Americans with an annual income of $40,000 said they experienced hardship last year.
This includes 20% who described it as “severe” hardship. Meanwhile, only 50% of middle-income Americans and 32% of upper-income families experienced “moderate” hardship.
Even as these households remain pessimistic about inflation, they continue to remain optimistic about the stock market and unemployment.
IMF Say Global Economic Recovery Worse Than Expected
Meanwhile, the International Monetary Fund (IMF) said on Tuesday that everybody should expect global economic recovery efforts to end up much worse.
The continued pandemic, rapid inflation, and supply chain disruptions are holding up recovery efforts. As a result, the IMF downgraded the US GDP projections from 5.2% in 2020 to just 4%.
This gloomy update occurred despite the strong rebound of the US economy. It declined by 3.4% in 2020, as the US was caught unprepared like most countries.
However, the US economy rebounded strongly in 2021, going over projections and posting a 5.7% growth.
Watch the CBS News video reporting that the US economy went up 5.7% in 2021:
Do you agree that prices will definitely go much higher this year? Do you expect even more hardships this year?
Let us know what you think. Share your thoughts below.