London based Journalist and expert Sameh Habeeb ruled out speedy economic recovery in 2022 citing a lot of challenges, particularly in third world countries. Prices of shipping, logistics, and goods have doubled and tripled lately which will also be a burden for all countries economics.
The World Bank has lowered its forecast for global economic growth for 2022 and 2023, warning that rising debt, inflation, and income inequality could stall recovery. They expect global GDP to rise by just 4.1% this year and just 3.2% in 2022. The organization also notes that nations will unwind unprecedented levels of policy support to combat the coronavirus pandemic. This could result in a sharp slowdown in global growth in the years to come.
Sameh Habeeb said, "In addition to this, the growth rate of the world economy will slow this year, with the US and China slowing down. The biggest threat isn't the coronavirus, but rather inflation and policymakers calling the post-pandemic recovery wrong. However, if the resurgence of Covid infections continues, economic activity will likely suffer. The following are the most significant concerns for the global economy this year."
As a result, the global economy will grow slowly in 2022. During the current quarter, the global economy may slow down. But growth will pick up speed in the first three months of next year. As health systems adapt to the new risks and the stricter vaccination requirements, the supply side of the economy should improve. Ultimately, it should begin to show signs of recovery by the spring of 2022.
"The slowdown coincides with a widening divergence between advanced and emerging economies, with growth in developed economies declining from five percent to 3.8 percent by 2022. As a result, output and investment in emerging and developing economies will fall to 4 percent below their pre- pandemic levels. The global economy will be impacted by this downturn in a number of ways." suggested Sameh Habeeb
He added that, despite the positive outlook, there are several factors that could slow down the global economy in the coming years. While the United States will experience continued growth in 2022, the Euro zone is facing a supply chain crisis that may limit the ability of manufacturers to produce products. As a result, the European Union's biggest economy will face a crisis this year. The IMF is warning that the global economy will grow slow in Europe in 2022 and that the United States will experience severe shortages in the same area.
Inflation and geopolitical conflicts are also factors weighing on the outlook for 2022. Inflation is rising to multi-year highs, with the US, the euro area, and the UK likely to see the slowest growth. The US economy will remain a major threat for investors in 2022, and the world will still need to keep the risk of rising interest rates at bay.
Sameh Habeeb added that the current Ukraine-Russia crisis will also add more challenges as the Covid: 19, crisis is till impacting the world.
