Omicron To Deter Global Economic Recovery Prospects In 2022, Says GlobalData

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GlobalData anticipates the United States real GDP growth to be 1.1% in Q1 2022 compared to 1.3% in Q4 2021. With difficulties to provide chains and high infection rates, the UKs genuine GDP development is forecasted to decrease to 0.7% compared to 0.9% during the exact same duration. On the other hand, with extra support from the government, Japans development is expected to rise from 1.3% to 1.6%.
Gargi Rao, Economic Research Analyst at GlobalData, comments: “The fast spread of Omicron in more than 100 countries together with increasing worldwide inflation rates, energy crisis stemmed out of coal scarcities, political tensions and slowdown in making output amid chips shortage stay the major disadvantage dangers to global growth in 2022.”

Advanced economies consisting of the US, the UK and other European countries are losing momentum in terms of economic activity, which highly picked up in H1 2021. Emerging markets continue to underperform due to irregular vaccination drive, less room to steer for additional policy assistance, along with the Chinese economic downturn.

GlobalData anticipates the US real GDP growth to be 1.1% in Q1 2022 compared to 1.3% in Q4 2021. With challenges to supply chains and high infection rates, the UKs genuine GDP growth is anticipated to slow down to 0.7% compared to 0.9% throughout the very same period. On the other hand, with additional support from the government, Japans growth is expected to rise from 1.3% to 1.6%.
GlobalData travel and tourism database forecasts the number of air travelers globally for long haul and short haul to grow by 44% and 48%, respectively, in 2022.
Rao concludes: “The threat to worldwide financial healing in 2022 seem balanced.

Rao continues: “Despite the dangers and the anticipated slowdown in financial growth, India and China are anticipated to drive the international development in 2022. On the other hand, the Federal Reserve is expected to tighten up financial policy measures to tame high inflation levels may lead to capital outflows from emerging nations.”
Flight Cancellation
Tourist dependent economies are anticipated to deal with significant headwinds to development potential customers in early 2022 with re-imposition of restrictions. GlobalData travel and tourist database forecasts the number of air passengers globally for long haul and brief haul to grow by 44% and 48%, respectively, in 2022.
As we progress to 2022, supply chain traffic jams are expected to ease with production getting. The general organization outlook stays positive, but Omicron scare, and tight financial policy may cloud financial investments. In addition, an early withdrawal of policy assistance might weaken the global recovery and increase personal and public sector vulnerabilities in early 2022. The draw back of public costs in 2022 in many of the nations might put brakes on economic activity.
Rao concludes: “The danger to global economic recovery in 2022 seem balanced. The approval of The Regional Comprehensive Economic Partnership (RCEP) deal is expected to bolster trade opportunities in the Asia-Pacific region.
About GlobalData
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Updated on Jan 11, 2022, 3:25 pm

Despite visible green shoots in essential macroeconomic indicators in the very first half, the introduction of new COVID-19 variant Omicron and its fast spread has made the worldwide financial recovery significantly irregular towards the tail end of 2021, due to which GlobalData, a leading analytics and data business, has revised down the worldwide financial development forecast for 2022 from 4.6% in July to 4.5% in December 2021.

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