Predicting the big economic stories of 2022 (part 1)
Frances Donald of Manulife Investment Management and I came up with what we think will be five of the top economic stories to watch in 2022
By Todd Hirsch, ATB Economics 20 January 2022 1 min read
One of the typical tasks of an economist is to predict what’s coming next. I recently had the chance to take on this task with Frances Donald of Manulife Investment Management in the latest episode of ATB Financial’s The Future Of podcast.
Frances and I came up with what we think will be five of the top economic stories to watch in 2022. Today’s Owl highlights the first three stories; tomorrow’s Owl will cover the other two.
The first story is how the Omicron variant and the pandemic will impact the global and Canadian economies as we get deeper into 2022. From an economic point of view, Omicron may have less of an impact than earlier strains, but we will have to wait and see.
#2: Global supply chains
Another big economic story will be when, and how, global supply chains are repaired. In addition to a tragic health crisis, the pandemic has also wreaked havoc on the movement of goods around the world. The “just-in-time” approach has left many businesses and consumers without access to the inputs and goods they need. While we expect things to improve in 2022, it may be a slow return to normal for the transportation and logistics industry.
#3. The changing nature of the US labour market
While not as acute in Canada (yet), the job market south of the border is heating up. High unemployment early in the pandemic has rapidly given way to labour shortages, leaving many employers scrambling to find workers. As a result, wage pressures are building and adding to the high rates of inflation. The way workers think about their jobs and careers also appears to be changing with greater emphasis being placed on job satisfaction.
Answer to the previous trivia question: As of January 1, 2021, the $1, $2, $25, $500 and $1,000 bills were no longer considered to be legal tender.
Today’s trivia question: Which federal minister is responsible for the Bank of Canada Act and the Currency Act?