United States of Growth, Headwinds for Wind Energy, and Travel Industry Forecast

US GDP Growth

The US economy grew by 5.7% in 2021, recovering from a 3.4% contraction in 2020 due to the Covid-19 pandemic. The growth was driven by strong consumer spending, business investment, and exports, while government spending and imports declined. The fourth quarter of 2021 saw a 6.9% annualized increase in real GDP, the fastest pace since the third quarter of 2020. The US GDP growth rate is expected to moderate to 2.4% in the second quarter of 2023 as the effects of fiscal stimulus fade and inflation pressures rise.

Wind Energy Market

The US wind energy market had a record year in 2020, adding 16,836 MW of new capacity and representing the largest source of new electric-generating capacity. The total installed wind capacity reached 121,955 MW by the end of 2020, providing more than 10% of electricity in 16 states and over 30% in five states. The wind energy market grew in 2021, especially in the offshore and distributed segments. The US offshore wind pipeline expanded by 24% to 35,324 MW, with two projects totaling 42 MW in operation and 15 projects in the permitting phase. The US distributed wind sector added 14.7 MW of new capacity with 1,493 new turbines across 11 states, bringing the total to 1,055 MW from more than 87,000 turbines.

Travel Industry

The travel industry was severely hit by the Covid-19 pandemic, with travel spending dropping by 42% in 2020 and international arrivals plunging by 76%. However, the industry started to recover in 2021, thanks to increased vaccination rates, pent-up demand, and accumulated savings. Travel spending improved by 5.5% year-to-date through May 2023, while overseas arrivals made little progress and remained 26% below pre-pandemic levels. Air travel demand increased by 12% in June compared to last year's, while hotel demand remained below pre-pandemic levels for the fourth consecutive month. The travel industry faced new challenges from the emergence of the omicron variant, which led some countries to tighten their borders again and dampen consumer confidence.

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