Russian – Ukraine War, China Lockdowns Could Push US Economy Into Stagflation In 2023 – By Panos Mourdoukoutas Ph.D. (IB Times) / Nov 29, 2022
The ongoing Russian-Ukraine war and lockdowns in China in the face of interest rate hikes could renew supply chain woes and push the U.S. economy into stagflation in 2023.
Chamara Gunetileke, the senior director at Acuity Knowledge Partners, an analytics and business intelligence firm, warns that the threat of stagflation is real.
“We believe the probability of the U.S. slipping into stagflation remains moderately high,” he told International Business Times in an email. “On account of the recent supply-chain issues in China, tight commodity supplies due to the Russia-Ukraine conflict, healthy demand, and the ongoing rate-hike cycle.”
“Stagflation” is a term economists use to describe a situation of slowing economic growth and rising inflation and unemployment. Increasing raw materials and energy costs cause it. They force producers to scale back production, lay off workers, and hike prices.
