What to expect from the American economy in 2022

After a resurgence in economic activity in 2021 (which in and of itself was something of a miracle), all eyes are now pointing towards 2022 and the big question being asked of economists and financial manager is this: What does 2022 hold for the American economy?

The overwhelming answer seems to be this:

 

Multiple lockdowns, restrictions on travel worldwide, and a booming global economy in certain sectors make for a soupçon of unpredictability and volatility. With that said, American economic activity did enjoy something of a resurgence in 2021, largely spurred on by increases in consumer spending.

However, there is some good news on the horizon. The belief is that by next year, the pressures of trying to navigate travel for international business with renewed lockdowns and restrictions on movement, are expected to change.

The impact of Omicron COVID on the economy in 2022

“Economists have struggled to predict the impact of COVID-19 on economies throughout the pandemic, including in the U.S., where changes in the labor market have surprised both the government and forecasters.

Still, they expect Omicron will push economic activity from the first quarter into the second, with a smaller impact than from prior waves of the pandemic. The Federal Reserve earlier this month forecast that the U.S. economy would grow by 4 percent next year.” 

That’s according to the Wall Street Journal, and you can read the full article here. This is a sentiment that is shared by many economists and forecasters. While it’s not terrible news, there are still plenty of opportunities available. However, we’re not quite out of the woods yet.

However, a downturn in economic activity doesn’t necessarily mean that business is bad for everyone. 

Watch these sectors in the next 12 months

Biotechnology

Biotechnology is the science that manipulates living organisms to create commercial products.

Much of these end products have use in high-growth industries. Healthcare, food, and agriculture as well as biodegradable plastics and biofuels are all industries that benefit from biotech and according to Grand View Research, the size of this market is looking to reach a staggering $721 million by the year 2025, with a compound annual growth rate of 7.4 percent.

Artificial Intelligence

Forecasters suggest that the AI market is probably going to reach $190.61 billion by 2025. We’re looking at machine learning and predictive analytics as well as natural language processing and neural networks. 

Autonomous vehicles, robotic process automation, logistics and delivery, customer services. The list is quite extensive. If there is a job that a human does, it’s likely a machine will do it in the future.

“The green economy”

The White House has unveiled plans to invest over $400 billion over ten years in renewable and clean energy programs. This is part of a much wider plan to mobilize public investment. According to the Center for Climate and Energy Solutions, renewables are the fastest-growing sector within this overall movement. Investment has grown by over 100% in the last ten years alone.

What does this mean for business?

Well, even though there is a damper on excitement levels, that is not to say that there is no excitement to be had. Businesses have to adapt and evolve to meet demands within local and domestic economies.

Your business may have taken a battering last year because traditional marketplaces are either struggling or simply doesn’t exist anymore. Moreover, the onus is on you to expand on your experience bases and service offerings to cash in.

Your state has specializations that apply uniquely to where you’re located, so your business model needs to adapt to survive. A B2B expert can help you make sense of the business-to-business model and how you can access new marketplaces.

Businesses rely heavily on online marketing to get their messages to where they need to be. There is an opportunity there. Along the line of service or product delivery and provision, exist various touchpoints that each business outsources to conduct their business effectively. There are opportunities there and businesses that want to expand and enjoy great reach, need to do business, with other businesses and indeed, that is where many of America’s new business opportunities are going to originate in 2022.

All business owners and entrepreneurs have had to have very hard conversations with themselves over the past 18 months. The top performers and winners were (and will be) those who prepare to rise to the challenge.