According to CBRE’s global chief economist, Richard Barkham, the economy will increase in 2022 and 2023. In a recent CBRE webinar, Barkham predicted that the economy will rise above trend by 4.7 percent in 2022. “That’s strong. “We expect strong demand,” he added.
Three reasons are driving the outsized GDP growth after the epidemic. Top on the list is fiscal and monetary stimulus. It also kept the economy from collapsing due to bad attitude, according to Barkham. “It also boosted consumer incomes, which benefited multifamily.”
Even though the stimulus has faded, the impact has. Another indicator of hope for the economy is stronger fiscal growth and government expenditure. “The impacts endure throughout the US economy, both government expenditure and low interest rates,” adds Barkham. “The Build Back Better program will lead to further budgetary expansion, which will boost optimism. We expect these forces to remain strong in 2022 and 2023.
Second, the full reopening of the economy next year will support further economic recovery in 2022. However, when more versions arise, some rules stay in force. Reopening will be conceivable if the immunization campaign works and booster injections are available. “It depends on the vaccine program’s success,” adds Barkham. A reopening of the economy, notably in the service sector, will continue to fuel development in 2022.
Consumer spending growth is the final component in economic recovery. People are rich with cash after two years of staying at home and multiple rounds of personal economic stimulus payments. “That will boost consumer spending. That expenditure in products will offer chances in industry and logistics,” says Barkham, who adds that consumers aren’t the only ones with additional cash. As a result of the epidemic, many businesses are upgrading IT systems and other office-related technology.
These factors are boosting macroeconomic growth and our industry’s revival. The three criteria, according to Barkham, are: The previous 12-18 months have seen a near-full rebound in real estate. We experienced net industrial, multifamily, and retail absorption.”
