Covid-19 showed That we have to deal with the deepest flaws in the global economic system. But without strong economic growth, the world will struggle to get out Extreme, Let’s reform the global economy in a better way for all. By 2022, global economic growth will stagnate, with many developed and developing economies expanding below the basic threshold of 3 percent needed to double per capita income in one generation.
Next year, it will also be difficult to restore global economic growth as large areas of the world will remain unaffected and global trade and investment will continue to be disrupted.
To further complicate matters, the tools that governments have traditionally employed to begin recovery have already been widely used, and the power to drive policy growth has reached its limits. Interest rates in the United States and the United Kingdom have historically been low, and negative interest rates in Europe and Japan. Many countries are heavily indebted. In 2020, the debt-to-GDP ratio in the United States and the United Kingdom was over 100 percent.
This rising rate of national debt could further limit public spending and the government’s ability to provide public goods such as education, healthcare, infrastructure and national security, further reducing the potential for meaningful economic growth.
Even before the epidemic, the factors hindered economic growth. In 2022, these will continue: the spread of automation and technological advances, which could lead to widespread unemployment; Demographic change, including rapid population growth; Climate change; And growing inequality.
The advent of the global epidemic has exacerbated many of these concerns, complicating the government’s ability to drive economic growth in a just and sustainable way. Unequal vaccination rates around the world – mainly in the developed and developing world – further increase inequality and delay economic recovery. In Africa, where about 20 percent of the world’s population lives, the vaccination rate is close to 1 percent. Perhaps people in many parts of the emerging world will remain unvaccinated throughout 2022, increasing their exposure to new and more contagious forms.
Given the integrated nature of the global economy, emerging economies next year will still not be able to experience the economic return already seen in many developed regions in 2021, meaning global growth will remain low and slow. Many developed economies have enjoyed a reboot built behind mass vaccination and government stimulus packages. However, even emerging economies will not be able to sustain this recovery without recovery. Developed countries cannot maintain their economic position if they cannot sell goods and services abroad.
Next year, we will see more clearly how the fate of the global economy is involved and realize that no hope of a global economic recovery can be achieved unless the developed and developing countries are on two different tracks.
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