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United States: 4 indicators that show the strength of its economy despite inflation

Inflation in the United States during 2021 closed at 7.0%, the highest figure since 1982. The rise was driven by energy prices that rose 29.3% and food prices 6.3%, according to the index CPI (CPI).

However, despite the increase in the cost of living, the economist Gian Maria Milesi-Ferretti, a senior researcher at the Brookings Institution think tank, recounts other economic indicators that show that things are not all bad in the North American country. .

High economic growth

The growth of the US GDP in 2021 was 5.7%, a higher percentage than that registered in 2019 (before the pandemic) when it reached 2.2%. In addition, it contrasts with the 3.4% decline that it recorded in 2020.

“The economy has had a better performance when compared to other developed countries, such as those of the so-called G7″, which also includes Canada, France, Germany, Italy, Japan and the United Kingdom, Milesi-Ferretti told the BBC.

Decrease in unemployment

At the end of 2021, the level of unemployment in the US went from 6.4% to 3.9%. The figure is the largest drop in unemployment in the same year in the country’s history.

In February 2020, before the pandemic, unemployment was at 3.5%, that is, just 0.04% from the current level.

Poverty reduction

According to Milesi-Ferretti, another factor that shows the strength of the US economy is the decline in poverty over the past year.

According to projections from Columbia University, poverty would have reached 12.6% last year. After comparing this data “with 10.5% in 2019, it is seen that the situation did not escalate to levels that are difficult to control as it did in other countries.”

Consumption increase

During 2021, the per capita spending of US consumers reached US$47,528, a higher level than in 2019, when it was US$43,919.

“Consumption has done very well in a difficult time,” says Milesi-Ferretti.

With information from the BBC

Source: Larepublica

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