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Global economic growth, inflation slows in 2022: IHS Markit

According to IHS Markit, the global economy will continue to grow, albeit at a moderate pace over the next three years. Downstream inflation will begin to ease in the first half of 2022 as supply conditions improve.

IHS Markit’s Purchasing Managers Index Survey shows the acceleration of the service sector, which should continue until 2022, with a further recovery in travel and tourism. Global growth will settle to 3.4% in 2023 and 3.2% in 2024 as demand stagnation is met, employment recovery is complete and fiscal and monetary policy is tightened.

Measured tightening of monetary policy will help curb inflation expectations and actual inflation, the company said in an analysis.

IHS Markit recently said global economic growth will continue at a moderate pace until 2024. Coronavirus is still a cause of regional economic turmoil, but its economic impact diminishes with advances in vaccination and treatment. Downstream inflation will begin to ease in the first half of 2022 as supply conditions improve, he said.

Ebb tides and currents vary from region to region for each wave of the COVID-19 pandemic. The weakening of the impact of regional outbreaks on economic activity will then be communicated globally through trade relations, he said. Due to the expanding fiscal and monetary policies that underpin demand, the impact is widespread shortages and rising prices.

Global growth recovers at an annual rate of 3.8% quarterly in the fourth quarter as the resilience of the Asia-Pacific region and North America outweighs the marked slowdown in Europe, where COVID-19 virus infections are on the rise. must.

According to IHS Markit, after a 3.4% decline in 2020, global real gross domestic product (GDP) is projected to increase 5.5% in 2021 and 4.2% in 2022.

Growth constraints associated with pandemics are eased in response to higher vaccination rates, more effective treatments, business adaptation, and rebalancing of personal consumption from goods to services.

Inflationary pressures will gradually ease as some significant supply shortages and transportation bottlenecks continue after 2022.

After the rapid growth in mid-2021, the growth outlook for the euro area deteriorated, and the US economy proved resilient in the final quarter of 2021 with strong growth in consumer spending and industrial production. Mainland China’s economy has resumed a long-term slowdown, and the Asia-Pacific economy is recovering from its third-quarter recession as factories reopen, IHS Markit added.

Fiber2Fashion News Desk (DS)



Global economic growth, inflation slows in 2022: IHS Markit

Source link Global economic growth, inflation slows in 2022: IHS Markit

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