2022 OECD Economic Surveys: United States 2022

image of OECD Economic Surveys: United States 2022

The United States economy rebounded strongly from the depths of the pandemic recession, aided by a large and enduring government policy response. However, Russia’s war against Ukraine and strong inflationary pressures have dampened the economic outlook. The administration is reinforcing public welfare through packages that invest in infrastructure and the climate transition, but an ageing population means fiscal pressures are on the horizon. In response, further efforts should focus on both broadening the tax base and improving public spending efficiency, particularly in the areas of health and infrastructure. A persistent long-term challenge has been the hollowing out of the middle class, which has experienced stagnating incomes and rising costs of living. Two pressing policy challenges for this group relate to improving childcare and the climate transition. Expanding public investment in childcare can improve its affordability for the middle class and benefit female labour force participation. In addition, the impact on the middle class of policies to reach net zero carbon emissions by 2050 should be taken into account. An important aspect will be ensuring that active labour market policies and place-based policies are in place to tackle labour market disruptions as jobs reallocate from high-carbon to low-carbon activities.




The United States, along with other OECD countries, is facing considerable uncertainty at present. Just when some of the supply-chain challenges triggered by the pandemic had started to fade, Russia’s war against Ukraine has inflicted a new negative supply shock on the global economy. Although direct trade and financial linkages of the United States with Russia and Ukraine are limited, there are impacts on global markets that are having considerable flow on effects for domestic inflation and output.



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