London: The year ahead will be dominated by efforts to fight inflation along with climate change, while global economic growth will be reasonably strong and stock markets weak, according to an economic forecaster.
The world starts the year with economies held back by a supply chain crisis and the rapid spread of the Omicron coronavirus variant, but the global economy is still expected to grow by about 4% in 2022, compared with an estimated 5.1% in 2021, according to the Centre for Economics and Business Research (CEBR), a UK Think Tank.
Douglas McWilliams is the founder and executive deputy chairman of the CEBR. He said that the group had been forecasting 6.7% growth for the UK in 2021 but reduced it to 6.6% after a weak December. "We estimate £3bn or so of lost GDP from people staying at home and not spending, plus the impact of the restrictions in Wales and Scotland." Similarly, the 2021 forecast for global growth was cut by 0.1 percentage points to 5.1%.