Inflation
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The White House is predicting a strong period of growth in 2022 despite continuing inflation.

On Friday, a senior Biden administration official told CNBC that rising prices and the Ukraine conflict will cause additional risks to the U.S. economy but GDP is expected to bounce back in 2022.

The official blamed the rise in gas and food prices on Russia’s invasion of Ukraine, and said that coupled with the continuing supply chain crisis, there will be more risks to the American GDP for the remainder of the year.

But recent economic data is pointing to 2021 turning out to be a strong year for the U.S. economy, despite historically high inflation numbers, with job increases, household savings and real incomes all showing positive trends.

“We are facing real risks and some challenges. One risk is the war that Putin has started in Ukraine. That has real effects on the U.S. economy, largely through energy prices and food,” the official said.

But they said that “the U.S. economy is in a strong position, even as we face some additional risks in the months ahead.”

The IMF estimated that the U.S. will see its GDP increase 3.7 percent this year. The figure is higher than Germany (2.1 percent), South Korea (2.5 percent) and tied with the UK.

(Israel National News' North American desk is keeping you updated until the start of the Seventh Day of Passover in New York. The time posted automatically on all Israel National News articles, however, is Israeli time.)