The third quarter of 2021 saw its slowest economic growth since the first months of the COVID-19 pandemic in 2020, though much-needed improvement could be just around the corner, CNBC reports.
The aftermath of the pandemic leaves the national economy in disarray as labor shortages continue and inflation threatens to extend an already delayed financial recovery.
Governments around the world spent trillions to smooth the impact of the abrupt curtailment of activity in the second quarter of 2020, but no one knew how the world would get back to business.
At first, the U.S. economy rebounded sharply, but a year later third quarter gross domestic product grew at just 2%, way below initial estimates, because of the uneven activity and extreme mismatches of supply and demand.
“What we’re seeing is an economy with millions of individual decisions having to cope with these large changes,” said Vincent Reinhart, chief economist at Mellon. “It’s a modern economy that has gotten more and more complicated...It’s a very complicated machine to restart.”
Advertisement
Related Stories
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady
Economics
NAHB CEO Tobin Says 'Housing Renaissance' on the Horizon
Responding to positive housing-related data such as falling mortgage rates and increased homebuyer activity, NAHB's CEO Jim Tobin is optimistic