With the Omicron wave upon us, it would be Pollyannaish to get overly enthused about the economy's prospects in the new year. But if the economy's performance last year is a guide, we should not be too pessimistic either. Despite being hit hard by the Delta wave of the virus, the economy grew like gangbusters in 2021. It will not grow as strongly in 2022, but inflation, which took off in recent months, will come back to earth. Having said this, how good a year the economy will have depends on the pandemic's path and how well policymakers respond.
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