Fitch Ratings expects that the world gross domestic product (GDP) will grow by 6.3 percent in 2021, while growth is expected to slow to 4.3 percent in 2022.
According to Fitch Ratings’ latest Global Economic Outlook (GEO), released on Wednesday, a faster-than-expected global economic recovery is boosting prices as supply chains have struggled to keep up with rapidly expanding consumer durables demand and world merchandise trade.
However, slower growth, supply adjustments in bottleneck sectors, a switch back towards services consumption, and fading impacts from US fiscal stimulus should see the rate of inflation decline in 2022. Fitch now expects world GDP to grow by 6.3% in 2021, revised up by 0.2 percent since the March GEO.
Incoming data, earlier-than-expected services sector reopening in the US and Europe, and the impact of policy support lie behind the revision. —Agencies