Summary The global economy continues to be whipsawed by the ups and downs of the pandemic. The initial collapse in economic activity was followed by sharp rebounds as economies reopened amid strong policy support. But economic growth has waxed and waned as new case counts continue to fluctuate, and the imbalances that have arisen have led to an almost-forgotten phenomenon: inflation. We project that U.S. real GDP will grow 5.7% in 2021 before downshifting to about 4.4% next year. But we also forecast that consumer price inflation will exceed 5% in 2022, a rate that hasn’t been experienced since 1990. Many foreign economies likely will post solid rates of economic growth, but with relatively high rates of inflation in 2022 as well. Will economies be able to restore some semblance of “balance” in the foreseeable future? READ FULL REPORT>>
