Economy Defies Recession Predictions, Shows Resilience Despite Rising Rates
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Many experts predicted a recession in 2022, but it didn't happen. The economy grew strongly despite rising interest rates.
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The economy was like a constrained garden hose - there was pent up demand that started to flow as supply chains normalized. This boosted growth.
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Many households and corporations had locked in low rates before the hikes began, insulating them from the impact.
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Interest rates rose very quickly, but this didn't immediately impact those without variable rate debt.
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There are still risks ahead, like higher rates, a housing construction recession, and global instability. But the economy has proven resilient so far.