BAKU, Azerbaijan, Jan.11
By Leman Zeynalova – Trend:
After a contraction of 3.1 percent in 2020, global economic growth is expected to reach 5.9 percent in 2021 and slow to 4.9 percent in 2022, Trend reports with reference to the World Economic Forum (WEF).
By 2024, the global economy is projected to be 2.3 percent smaller than it would have been without the pandemic, according to WEF’s Global Risks Report 2022.
WEF analysts note that risks to economic growth are considerable, including risks from a potential resurgence of COVID-19 as new variants emerge.
“The previous edition of the GRPS identified “commodity shocks”, “price instability” and “debt crises” as critical medium-term concerns. These are already emerging to some extent. At the time of writing, commodity prices had increased nearly 30 percent since end of 2020;15 they could remain volatile because of growing tensions between Europe and Russia, China’s energy shortage, continued supply chain disruptions and transition challenges from disinvestment in fossil fuel reserves. Inflation has accelerated in many countries as a result of pandemic-related disruptions to supply chains combined with resurgent consumer demand and higher commodity prices. This will dampen consumer sentiment—which has been fundamental for recovery—and will increase risks from central bank interest rate rises,” reads the report.
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