2022’s Global Economic Outlook
The global macroeconomy outlook for 2022 is expected to remain positive. The macroeconomic outlook for the United States of America, in particular, looks promising and will likely lead to a steady increase in GDP over the next four years. The growth in GDP has been attributed to strong domestic demand and robust international trade. On the other hand, high levels of trade protectionism are expected to slow down the economic growth of several countries.
Currency traders, focusing on the U.S. dollar, may be interested in industrial metals such as copper and zinc as they have been positively impacted by growth in the U.S. economy, which consumes large amounts of industrial metals due to strong demand from key sectors such as construction and transport.
The outlook for global economic growth is expected to be positive. However, political protectionism may slow down the economic development of several emerging countries. Most emerging markets are already in an economic slowdown, and a spike in protectionism will only make things stagnant. On the other hand, countries such as China will continue to grow their economy steadily with their government investing heavily in infrastructure projects.
GDP Growth: The global economic growth is expected to be at 2.5% in 2022, according to the OECD. The U.S. economy leads this growth with a projected growth of 2.6%, which is expected to be driven by domestic demand and robust international trade and higher labor productivity, and better infrastructure investment.
GDP Growth by Country: Brazil, China, India, Indonesia, Nigeria, and South Africa are expected to lead the world’s GDP growth in 2022 by 5%. Russia and Mexico are behind them, with growth expected at 4.5% in 2022. The United States is expected to grow at 2.6%, while Japan is expected to grow by 1.9%. Germany, the U.K., and Canada are expected to average growth of 1.8% in 2022.
According to the OECD, the global inflation rate is projected to be 0.8% from 2018–2022; this includes an increase from 0.5% in 2017 to 1% in 2022. The inflation rate is expected to be driven by increased oil prices, resulting from higher demand for oil per vehicle and crude oil consumption across the globe.
Interest Rates: The U.S. Federal Reserve is expected to raise interest rates from zero in 2018 by one-quarter of a percentage point for the first time since 2008, according to the OECD’s latest forecast, and this would be followed by two more rate hikes in 2019, according to a report from Reuters.
Originally published at https://bopolny.com.