Three Economic Movers to Keep an Eye On this Summer

Several global and domestic factors will continue to impact the farm economy throughout the growing season. The three major economic movers producers should keep watch on include: inflation, global economy health and low unemployment.

While U.S. inflation maintains its 40-year high, it is not the only country seeing the impacts of rising costs. Producers should expect higher interest rates on loans in 2023. Meanwhile post-pandemic economic improvements are being seen in many countries. The U.S. saw a GDP rate of 5.5% in 2021, on par with pre-pandemic trends. China, Mexico, Canada, Japan and South Korea have seen economic growth that will benefit U.S. agriculture. The U.S. unemployment rate fell to 3.6% and is projected to fall below 3% later this year. Increased automation is anticipated as a result of the labor shortage struggle.

Read more on economic factors influencing U.S. agriculture here.