UNITED STATES—The U.S economy unexpectedly dropped 1.4 percent in the first quarter of 2022. According to the U.S. Bureau of Economic Analysis (BEA), the drop in the Gross Domestic Product (GDP) is following a 6.9 percent upsurge in the final quarter of 2021.
According to the Advanced Estimate report released by B.E.A., on April 28, 2022, a second estimate with more complete data will be released on May 26.
Investopedia further explains the U.S. real GDP annualized growth rate during the fourth quarter of 2021, which was up from the 2.3 percent in the third quarter of 2021.
In 2021, real GDP showed 5.7 percent growth versus 3.4 percent decline in 2020.
What BEA refers to as the nominal or current-dollar GDP increased 14.3 percent in the fourth quarter and 10 percent in 2021.
According to mortgage reports, the interest rates are expected to rise again following the meetings of the U.S. Federal Reserve on May 3 and 4. Inflation rates are at a 40-year high. The mortgage rates are expected to grow with the economy.
Graphs provided by Freddie Mac indicate that the rise in Mortgage rates could vary as much from a 3.78 percent on 5/1-1Yr ARM [annual renewable mortgage] to 4.4 percent for a 15-Yr-FRM and 5.1 percent for 30-Yr-FRM.
The Biden administration publicly took credit for the 6.7 million jobs gained in 2021 with the average annual unemployment rate of 5.4 percent which is 2.7 percent lower than 2020 and 1.7 percent higher than 2019. There were also 9.3 million jobs lost in 2020 due to the pandemic.
Businesses in areas where communities were shut down and mandated account for many jobs lost and businesses closing.
On April 22, 2022, the Bureau of Labor Statistics (BLS) reported that the prices for US exports rose 4.5 percent in March 2022, following a 3.0 percent rise in February and 2.8 percent in January. These three advances were the largest monthly increases since BLS began publishing one month increases in January of 1989.
On April 21, 2022, BLS reported that the U.S. import prices increased 12.5 percent for the end of March 2022, the largest 12-month increase since a 12.7-percent rise in September 2011.
Import fuel prices rose 66.7 percent from March 2021 to March 2022. Prices for petroleum and natural gas advanced 66.5 percent and 79.7 percent, respectively, over the same period, BLS reported on its website.
Prices for nonfuel imports rose 7.5 percent for the year ended in March, the largest over-the-year advance since 12-month percent changes were first published in December 2002. Nonfuel prices have not recorded a 12-month decline since June 2020.
Prices for import foods, feeds, and beverages were up 13.4 percent over the year ended March 2022. Prices for industrial supplies and materials were up 37.7 percent over the year. Prices for consumer goods, excluding automotive were up 3.0 percent over the year.