As we move into 2023, the US economy stands to impact people’s mobility in various ways. Looking ahead with optimism and caution, what economic changes can be expected over the next few years—and how will they shape our lives?
The International Monetary Fund (IMF) projects that the global economy is set to slow down in 2023 (1.6% growth), with an expected rebound in 2024. Economic growth will likely remain weak across the board, consistent with historic downturns experienced by world economies through 2021 and 2022.
The economic and social effects of the Russia-Ukraine war and the global fight against inflation remain the most significant drivers of growth and stagnation this year.
However, some experts suggest that the outlook for 2023 is a bit more optimistic than 2022, especially since inflation is beginning to slow. Labor markets are regaining strength, and business investments, household consumption, energy crisis management, and overall economic mobility remain stable globally.
Furthermore, JPMorgan’s research reveals a silver lining: there is no imminent risk of the global economy sliding into a recession.
But while the sharp decline in inflation is set to promote growth in the global context, the US may yet experience a recession before the end of 2023. This article will look at the complex relationship between the economy and mobility in the country and what 2023 will look like for the nation’s economy overall.
Economic Mobility in the US
When considering the United States economic stability, a few key factors play a role in what affects the economy at large. These include global trade agreements and policies, government spending, inflation rates, exchange rates, unemployment rates, and interest rates, among others. The overall perception of these elements determines if a particular economy can be considered stable or volatile.
US economic predictions for 2023 paints a picture of slow but resilient growth. Income inequality is likely to remain a persistent issue, with only modest gains in economic mobility. Economic growth is projected to slow to 1.4% as Federal Reserve interest rate hikes drive economic consequences.
With a tight labor market and rising wages, inflation in the country could persist despite initial predictions regarding its decline globally. In such a scenario, monetary policies will need to be tightened.
The reality of climate change is also a pressing concern, with the costs of environmental damage already weighing heavily on local and global GDP.
What Are the Effects of Climate Change on the Economy?
The Biden-Harris administration has made radical climate change pledges to reduce emissions and invest billions into green projects. The Inflation Reduction Act of 2022 (IRA) is a solid step in this direction and will dictate how Americans live in 2023 and beyond.
The economic impact of climate change will be wide-reaching, with potential effects including increased long-term costs for businesses, reduced people mobility, decreased employee productivity due to health risks, and decreased consumption spurred by rising product prices.
These effects are a looming concern that requires active investment and long-term solutions for a viable 2023 US economy. And the impact goes far beyond the 2023 outlook, encompassing the following areas:
Agricultural and food production
Property loss and damage
Costs associated with infrastructure and services
Impacts on public health and wellbeing
Risks to financial stability
The IRA’s passage into law marks an unprecedented effort by the federal government to combat inflation and invest in domestic energy production and manufacturing. This landmark legislation is especially remarkable for its goal of reducing carbon emissions by a staggering 40% by 2030.
The IRA specifically directs federal spending toward domestic manufacturing capacity and R&D focused on developing cutting-edge technologies, specifically low-carbon solutions such as clean hydrogen, carbon capture, and carbon storage.
The law also allocates money to environmental justice priorities, which include sustainable housing, pollution reduction, clean energy and energy efficiency, and clean transit.
What the IRA Means for People's Mobility
Following increased federal support for climate efforts and the push for sustainability, the micromobility industry is also seeing a shift in the adoption of alternative modes of transportation, such as:
Bike and scooter sharing
Bike and scooter rentals
Scooter, e-scooter, and bike sharing apps and systems
E-bikes, mopeds, and e-scooters
Bike and scooter sharing statistics show that the micromobility market is expected to see a compound annual growth rate (CAGR) of 12.5% through 2027. This is driving more micromobility businesses to open amid wider adoption and projected market growth of up to $6.1 billion by 2027.
While the pandemic and the subsequent economic downturns catalyzed the shift towards more sustainable, energy-efficient micromobility solutions, the overall “shift” started as early as 2011. When much of America’s Generation Y (Millennials) came of age, they also marked a change in the country’s driving and housing preferences.
Due to various factors, younger Americans opted for housing closer to their workplaces, taking advantage of the benefits of micromobility for convenient and cost-effective travel options. Suffice it to say that federal initiatives supporting sustainable transport solutions have been a long time coming.
In 2023, a new generation of Americans will see infrastructural and technological improvements that support the micromobility industry and culture shift. Bike and electric scooter trends are expected to pick up, with initiatives focusing on making cycling and other alternative transport methods safer for daily use.
The growth of bike sharing systems and electric scooter usage is also forecasted to continue, marking an expansion in bike and scooter sharing companies, bike and scooter sharing apps, rentals, and systems.
More novel applications of micromobility in the country, such as bike sharing as a hotel amenity and bike and scooter sharing as a way to boost tourism and supplement public transit can all be expected in the near future.
ANIV: Providing Sustainable Solutions that Empower Individuals
With robust infrastructure and support from the federal government, 2023 may be a landmark year for US mobility, despite the economic challenges many micromobility companies have faced in the last few years.
Personal mobility solutions provide many ways for everyday Americans to make the most of the government’s efforts to improve access to healthier, sustainable modes of transportation.
ANIV aims to help businesses and individuals establish their own micromobility sharing platforms to impact the world one ride at a time. Our team is eager to be part of the micromobility revolution, and we invite you to join us.
With ANIV, establishing a scooter sharing company (or any other micromobility business) need not be stressful or costly. With our end-to-end solution, businesses can:
Launch a functional and branded app with our zero-coding, ready-to-ship app infrastructure
Scale operations by setting up multiple franchises and managing their fleets remotely via AI
Earn ad revenue and find new ways to maximize business efforts with powerful analytics
Start a business with high-quality bikes, scooters, e-bikes, mopeds, and smart lockers
Contact ANIV today to launch your micromobility business and become a part of the change!