The third year of J. Biden’s presidency: the state of the economy

Abstract

The article aims to show economic development in the USA after two years of presidency of J. Biden. The author shows major indicators of macroeconomic situation in 2022, gives estimations for 2023 and foreseeable future. Real GDP increased by 2.1% and accounted for 25.5 trln dollars. The economic growth reflected growth of consumer expenditures, growth of exports, of private investments including fixed capital. On the other side the problem of inflation is exacerbated, the consumer price index increased up to 10% in the middle of the year, reaching the average level of 6.2% in 2022. Since the second part of the year the inflation began to slow down. The level of unemployment remains unprecedentedly low - at 3.6%. The consequences of government economic policy showed positive direction. The federal budget deficit decreased to 5.5% of GDP, mostly because of measures taken by the Federal Reserve. The inflation seems to have a stable downward trend. In August 2022 the Congress passed a law “Inflation Reduction Act”. Most forecasts for 2023 don’t expect a new recession in 2023, though the GDP growth rates will go down significantly - to 0.8-1.0%. The inflation will go down as well, the unemployment remains on a level less than 4%.