Economic Update – The Lucky Country

The global economy has continued its strong recovery with the global GDP expanding 6.5% in 2021 after -2.1% in 2020. It is forecast that the global economy will have another strong year as major economies recover om the pandemic. The recovery will continue to be uneven as COVID-19 outbreaks challenge the economic reopening. High consumer savings support the reopening growth expectations. Inflation and central bank reactions will likely determine the longer-term pathway while other issues such as the collapse of major companies (Evergrande) and supply chain issues (energy crisis) could derail the economic agenda.