Global real GDP predicted to increase by 5.7% in 2021

Euromonitor International recently released Global Economic Forecasts: Q4 2021 focusing on quarterly macro changes for the world’s key economies and what these changes mean to the global economy.

According to Euromonitor International, after contracting by 3.1 percent in 2020, global real GDP is predicted to increase by 5.7 percent in 2021 and by 4.6 percent in 2022. The global economic outlook at the end of 2021 remains constrained by an ongoing mismatch between consumer demand and the availability of certain services, due to shifts in Covid-19 infections and restrictions, and a mismatch between the speed of recovery in demand and the rebound in global supply.

“The baseline forecasts were done before news of the new Omicron coronavirus variant. However, based on the information so far the impact of the new variant is likely to require a moderate downgrade of around 0.5 percentage point to the 2022 global real GDP growth forecast,” Daniel Solomon, Senior Economist at Euromonitor International, said.

Eurozone real GDP is expected to increase by 4.9 percent in 2021 and by 4.3 percent growth in 2022. The forecast upgrade mainly reflects a better than expected Eurozone recovery during Q2-Q3, especially for consumer spending. 

(WBJ)