Underlying Economic Conditions
The world economy will continue to rebound in 2022. But, according to economic analysts, growth will be at a slower pace. The OECD (Organisation for Economic Cooperation and Development) expects 4.5 percent growth in 2022, slowing to 3.2 percent in 2023. The OECD made its outlook conditional, due to uncertainties surrounding the future course of the pandemic and supply bottlenecks in key industries. The IMF (International Monetary Fund) also sees significant risks to economic growth and the Fund’s economists recently lowered their outlook. They estimate that global GDP (gross domestic product) will climb by 4.4 percent in 2022. The pandemic will hamper economies to varying degrees. Alongside concerns about the future spread of the pandemic, analysts are troubled both by the rapid increase in debt in every country due to stimulus packages and by high inflation rates. In addition, geopolitical crises such as in Ukraine could slow economic growth.