UNITED NATIONS (Reuters) - After expanding by 5.5 percent in 2021, the global output is projected to grow by only 4 percent in 2022 and 3.5 percent in 2023, according to the United Nations World Economic Situation and Prospects 2022, which was launched Thursday.
The report said that the global economic recovery is facing significant headwinds amid new waves of COVID-19 infections, persistent labor market challenges, lingering supply-chain challenges and rising inflationary pressures.
The robust recovery in 2021 - driven by strong consumer spending and some uptake in investment, with trade in goods surpassing pre-pandemic levels - marked the highest growth rate in more than four decades, the report highlighted. Yet the momentum for growth - especially in China, the United States and the European Union - slowed considerably by the end of 2021, as the effects of monetary and fiscal stimuli began to recede and major supply-chain disruptions emerged. Rising inflationary pressures in many economies are posing additional risks to recovery.