Officials Forecast Lower Global Economic Growth For 2022-2023

Supply chain disruptions have played a key role in stalling global recovery this year. Experts expect the supply bottlenecks to continue weighing on growth well into next year. The auto sector has been among the worst-hit, with production tumbling in the eurozone. Rising inflation has spooked global investors who fear central banks will raise rates prematurely. The United Nations forecast lower global economic growth for 2022 and 2023 on Thursday.

The world economy is projected to grow by only 4 per cent in 2022 and 3.5% in 2023, the UN said. It said the world is facing new waves of COVID-19 infections, persistent labour market challenges, lingering supply chain issues and rising inflationary pressures. In the US, inflation concerns are expected to be even greater, propped up by rapid economic recovery, a massive fiscal stimulus, labor, and supply shortages. The World Bank has also downgraded its forecast of worldwide economic growth to 4.1 per cent this year from 4.3 per cent in June.

Small businesses in the U.S. are besieged on three fronts: supply chain issues, staffing shortages, inflation. The Federal Reserve System releases the latest collection of anecdotes about the state of economy from businesses, labor groups and others nationwide. Small business owners worry about the Omicron variant, fewer customers showing up in some areas, fearing spike in COVID-19 cases. Businesses in Phoenix, Brooklyn, and New York City have been hit hard by the outbreak. The Federal Reserve says the fast-spreading variant was exacerbating difficulties, especially for hiring and inflation.

The only thing we can do for now is to wait for new statements to be made and draw a road map for our own economy accordingly. However, as can be predicted from the statements made, the years 2022 and 2023 seem to be economically challenging and require patience for the whole world.


Ali Yetgin