Disclaimer: This article is for informational and educational purposes only.
The United States of America faced a lot in 2021, such as a supply chain crisis, a food shortage, an economic crisis, and the highest inflation rate in the past three decades.
The 2021 crisis shaped 2022, which experts predicted could be worse than the previous year. The situation may be worse than predicted due to the Russia-Ukraine conflict.
Russia-Ukraine conflict could have a major impact on the United States.
Impacts can be seen on the increase in supply chain crisis, more food shortage, rise in inflation, and rise in energy and oil prices.
Rise in energy and oil prices
The conflict between Russia-Ukraine led to suffering oil prices. In 2020 Russia was the third-largest exporter of foreign petroleum for America and in 2019 Russia supplies $13 billion of mineral fuel to the United States.
Supply chain crisis could raise higher food prices
Even before the conflict began, the American farmers were already facing the high fertilizer cost. Therefore, farmers plan to grow less corn and nitrogen fertilizer for the next growing season.
Experts are concerned about invasion because Russia is the second-largest potash producer (use in fertilizer) after Canada.
A senior analyst at Third Bridge, Patrick Donnelly, said, "The most immediate impacts will be further inflation in agricultural commodities and ultimately food prices. Americans should expect to be paying more for their grocery bills this upcoming year."
Bigger risk to the US economy
According to economists, inflation could rise to 10%. The last time inflation went that bad was in October 1981.
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