The global economy will cross the $100 trillion barrier next year 2022, expected an international economic research center.
The Centre for Economics and Business Research (CEBR) said that the global economy will exceed $100 trillion for the first time in history.
“The important issue for the 2020s is how the world economies cope with inflation, which has now reached 6.8 percent in the US,” CEBR founder Douglas McWilliams explained.
“We hope that a relatively modest adjustment to the tiller will bring the non-transitory elements under control. If not, then the world will need to brace itself for a recession in 2023 or 2024.”
CEBR predicted in the World Economic Association’s annual schedule, that the Chinese economy will outperform the United States in 2030, two years later than previously expected.
While India will regain sixth place from France next year and become the third largest economy in 2031, a year later than previous forecasts.
Britain is on track to have an economy 16% larger than France by 2036 despite its exit from the European Union. Germany will overtake Japan in 2033.
The report also indicated that climate change will reduce consumer spending by an average of $2 trillion annually until 2026.
The International Monetary Fund had revealed in its World Economic Outlook report, issued earlier this year, that it expected the global economy to grow by 4.9% in 2022.
IMF indicated the economy of Saudi Arabia–which has the strongest Arab economy–will witness a growth of 4.8% during the year 2022.
The Economist magazine had said in a report, in early December, that both the United States and China were on the throne of the global economy. Together, they account for 40% of the global GDP at the market exchange rate. But these two giants tend to influence other economies in different ways.
In its report, the magazine expected that 2022 will be a difficult year on the economic front. The two countries will be sandwiched between two huge pressure forces, a tighter US monetary policy and a slowdown in growth in China. In addition, Omicron variant may lead to the setback of economic recovery around the world.