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World economy now set to surpass $100trn in 2022

Two years earlier than previously forecast, according to the Centre for Economics and Business Research.

TAB by TAB
27/12/2021
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World economy now set to surpass $100trn in 2022

The world economy is set to surpass $100 trillion for the first time in 2022, two years earlier than previously forecast, according to the Centre for Economics and Business Research.

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World economy now set to surpass $100trn in 2022

Global gross domestic product will be lifted by the continued recovery from the pandemic, although if inflation persists it may be hard for policy makers to avoid tipping their economies back into recession, the London-based think tank said.

“The important issue for the 2020s is how the world economies cope with inflation,” said Douglas McWilliams, the CEBR’s deputy chairman. “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.”

In its annual World Economic League Table, the CEBR also predicted:

  • China will overtake the US in 2030, two years later than forecast a year ago.
  • India will regain sixth position from France next year and become third largest economy in 2031, a year later the previously predicted.
  • The UK is on track to be 16% larger than France in 2036 despite Brexit.
  • Germany will overtake the Japanese economy in 2033.
  • Climate change will lower consumer spending by $2 trillion a year on average through 2036 as companies pass on the cost of decarbonising investment.

World economy now set to surpass $100trn in 2022

Source: Bloomberg
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