Major Economies Economic Forecast

Economic Snapshot for G7 Countries

August 31, 2022

Global economic activity to lose pace in 2022

Global growth will cool in 2022, bruised by soaring inflation, higher interest rates and waning fiscal stimulus measures. The outlook is volatile, with risks tilted to the downside. A potential escalation  of the Russia-Ukraine war, faster-than-expected monetary policy tightening, stop-start  Covid-19 restrictions in China, and food and energy crises are downside risks.

Global inflation to rise in 2022

World inflation will jump this year on higher food and energy prices due to the war in Ukraine. China’s Covid-19 restrictions will further exacerbate supply disruptions. The course of the war and associated sanctions, a volatile global energy market,   rising interest rates and extreme weather events are key factors to watch this year and next.


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