Major Economies Economic Forecast

Economic Snapshot for G7 Countries

December 23, 2021

Global economic activity to slow this year

The world economy will lose steam in 2022, as the initial postpandemic rebound wanes in developed countries, and fiscal and monetary stances become more restrictive. However, many developing markets should record faster growth. Key risks include potential further stop-start Covid-19 restrictions amid new variants, and a possible hard landing in the Chinese economy.

Global inflation to dip in 2022

World inflation should dip in 2022, as global supply disruptions gradually ease, monetary policy is tightened and commodity prices tail off. However, inflation will stay fairly high relative to past years. The potential prolongation of supply shocks, further Covid-19 waves and the growing frequency of extreme weather events are key risks to the outlook.



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