Economic forecast report projects spending shift from goods to services, travel in 2022 – FOX13 News Memphis

WASHINGTON, DC – 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 say the recovery will be driven by several recent trends, including supply chain disruptions, increased household savings and growth in online shopping.

In the the annual report of the Mastercard Economics Institute, economists are predicting a shift towards some spending habits ahead of the pandemic this year.

For example, as international travel borders reopen and relax restrictions, the report predicts a return to what they call the ‘experience economy’ – 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 made 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 are willing to travel, how often we have to go to the office … with housing, and how affects house prices, how it affects car prices, and the supply chain and ultimately inflation to 2022, ”said Bricklin Dwyer, chief economist 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 related to the service sector that depend on that, that return of the workforce and that component of demand to know when people can go back there. down and feel comfortable moving. around, ”Dwyer said.

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