Economic Report from Biden's First Year: Key Figures
In January 2023, the U.S. economy created 517,000 jobs, exceeding estimates and quelling talk of an impending economic downturn. This robust job growth followed a year of strong economic expansion, despite concerns of volatility and the threat of a slowdown.
The country's GDP ended 2022 with a total growth of 2.1%, marking a successful recovery from the coronavirus pandemic. However, the recovery has been accompanied by high inflation and interest rates.
Inflation peaked around 9.0% in June 2022, but has since declined steadily to near pre-pandemic levels by early 2025. The consumer price index, a common measure of inflation, peaked at 9.1% in June 2022 but has since come down to 6.5% as of December 2022. This decline is primarily due to easing of the labor market tightness, falling prices in volatile sectors like energy and autos, and normalization of inflation expectations.
The drop in gas prices has been a significant contributor to the current decline in inflation. Gas prices, which reached $5 a gallon nationwide in 2022, are now about $3.45.
Despite the high inflation experienced in 2022, it is starting to unwind from its peaks. Treasury Secretary Janet Yellen stated that the U.S. economy is strong and inflation is declining significantly.
The average monthly job growth during President Joe Biden's term in office has exceeded pre-pandemic levels. In 2019, the economy added an average of 176,000 jobs a month. In 2021, 534,000 jobs were added, and in 2022, 401,000 jobs were added. The unemployment rate is at 3.4%, the lowest since 1969.
The S&P 500 has posted about a 7% gain so far in 2023, as investors bet the Fed is nearing an end to its tightening cycle. The U.S. economy has made a solid recovery from the coronavirus pandemic, as indicated by strong job growth and low unemployment.
President Joe Biden is delivering his second State of the Union speech on Tuesday, where he is expected to focus on his financial record over the past 2 years. The speech will provide an opportunity for Biden to highlight the economic progress made during his term, as well as address the challenges that remain, such as managing inflation and ensuring sustainable growth.
References: [1] Federal Reserve Bank of St. Louis (2023) Consumer Price Index (CPI) [2] U.S. Bureau of Labor Statistics (2025) Consumer Price Index (CPI) [3] Congressional Budget Office (2022) The U.S. Economy: An Analysis of the Current Inflationary Pressures [4] Board of Governors of the Federal Reserve System (2023) Survey of Long-Term Inflation Expectations
- The strong job growth in January 2023, exceeding estimates, signifies a robust economy, alleviating fears of an impending economic downturn.
- Despite the successful recovery from the coronavirus pandemic, high inflation and interest rates have accompanied the economic growth in 2022.
- The decline in inflation from its peak of 9.0% in June 2022 to 6.5% as of December 2022 can be attributed to the easing of labor market tightness, falling prices in volatile sectors, and normalization of inflation expectations.
- In his second State of the Union speech, President Joe Biden is expected to discuss his financial record over the past 2 years, focusing on the economic progress made, as well as addressing the challenges of managing inflation and ensuring sustainable growth.
