Forecast: Economic Challenges Will Persist Through 2023 Despite Strong Indicators

Inflation, supply-chain, and labor Issues will continue to weigh on the economy, creating a mixed bag of opportunities and challenges for the tech sector and channel.

The U.S. economy overperformed expectations in the final months of 2021, despite the rise of the Omicron variant and surging inflation. Economists and market watchers, however, see continued pressure on economic performance for the foreseeable future due to persistent inflation, supply-chain challenges, and labor shortages.

According to the Bureau of Economic Analysis, the U.S. economy leaped 6.9% in the fourth quarter of 2021, fueled by stronger-than-expected consumer spending. Economists and analysts expected the economy to grow by 5.5%.