Inflation remains much higher than normal. Consumers are pessimistic . The economy and the people who live and work in it, she said, are still to some degree stuck in the grip of the coronavirus ...

It is too soon to judge the tariffs’ exact effect on the American economy, but as they bite, activity is likely to slow. Chart: The Economist Inflation data were also released on April 30th.

Mind the ever-present risks: Of course, we should not get complacent. There will always be risks to worry about, such as U.S.

Since the end of 2019—a period that includes the covid-19 pandemic and its aftermath—America’s economy has grown by about 8% in real terms (see chart 1).

The nearby chart shows an economy with five percent inflation for a few years, followed by ten percent inflation. Note that higher inflation shows as a steeper slope, year after year.

The growth of the U.S. economy is slowing, with the gross domestic product dropping to closer to the “normal” level of around 2%. The probability of a recession remains low.