Economic forecast report predicts shift in spending from goods to services, travel in 2022 – WPXI

WASHINGTON — A new national report outlines the potential path for economic recovery this year as the pandemic continues for a third year.

The group of economists and scientists says the recovery will be driven by several recent trends, including supply chain disruptions, rising household savings and growth in online shopping.

In the Mastercard Economics Institute’s annual report, economists predict a shift to some pre-pandemic spending habits this year.

For example, as international travel borders reopen and ease restrictions, the report predicts a return to what they call the “experience economy,” which means spending more money on experiences and even services rather than goods.

Another trend to watch this year is the demand for e-commerce.

The report shows that around 20% of online sales were in retail during the pandemic.

The company says this change will determine how and where people spend their money.

But some challenges facing our economic recovery in 20-22 include the omicron variant and any new variants that may appear this year.

Economists say other challenges are more nuanced, such as the impact of the housing market.

“How we think about this space, where we live, the cars we buy, how far we’re willing to drive, how often we have to go to the office… there’s a lot of evolution in terms of rebalancing demand with housing, and how that affects property prices, how that affects car prices, and the supply chain and ultimately inflation looking to 2022,” said Bricklin Dwyer, economist in head and director of the Mastercard Economics Institute.

Additionally, Dwyer said recovery efforts will vary by industry.

“It’s really a tough challenge for a lot of these industries that are tied to the service industry that’s dependent on that, that’s shrinking in labor and that component of demand of when people can come back. there and feel comfortable with the move around,” Dwyer said.