The global economy will exceed $100 trillion for the first time in 2022, two years earlier than previously forecast. This was reported by the Center for Economics and Business Research.
Global GDP will be boosted by the ongoing recovery from the pandemic, although it may be difficult for policymakers to prevent their economies from sliding back into recession if inflation persists. This is the opinion of the London-based think tank.
“The key question for the 2020 decade is how global economies will deal with inflation,” said Douglas McWilliams, Vice President of CEBR. Hopefully a relatively modest modification will result in control of non-transitive elements. If not, the world will have to prepare for a recession in 2023 or 2024.”
Other predictions
The forecast is in line with estimates by the International Monetary Fund (IMF), which also projects that global GDP measured in dollars and current prices will exceed $100 trillion by 2022.
In the World Economic Association’s annual schedule, the CEBR also predicts the following:
- China will overtake the United States in 2030, two years later than was expected a year ago
- India will take back the sixth place from France next year and become the third largest economy by 2031, a year later than previous forecasts
- The UK is on track to be 16% larger than France by 2036, despite Brexit
- Germany will surpass Japan’s economy in 2033
- Climate change will reduce consumer spending by an average of $2 trillion annually through 2036 as companies pass on the costs of investing in decarbonization of their economies.
