$100T world economy in 2022; China #1 by 2030: Report
The global economic output is set to surpass $100 trillion in 2022, two years earlier than previously forecast, said a report by the Centre for Economics and Business Research (CEBR). It will take China a little longer than previously thought to overtake the United States as the number one economy, the report added. However, China will be able to overtake the US in 2030.
India to overtake France next year: Report
Further, India is set to overtake France in 2022 and thereby regain its sixth position as the world's largest economy, the CEBR predicted In its annual World Economic League Table. India will also surpass Britain in 2023, it said. India will become the world's third-largest economy by 2031, a year later than previously predicted, it added.
Other highlights from the CEBR report:
Germany is on track to overtake Japan in terms of economic output in 2033, the CEBR report said. Russia could become a top 10 economy by 2036, it added. It further said that Indonesia is on track for ninth place in 2034. Despite Brexit, the United Kingdom is on track to be 16% larger than France in 2036, it added.
'Inflation key issue to cope in 2020s'
"The important issue for the 2020s is how the world economies cope with inflation," the CEBR's Deputy Chairperson Douglas McWilliams said. "We hope that a relatively modest adjustment to the tiller will bring the non-transitory elements under control," McWilliams said. Failure to do so may lead to a recession in 2023 or 2024, McWilliams added. Notably, inflation has now reached 6.8% in the US.
'Inflation may disturb post-pandemic recovery'
Global Gross Domestic Product (GDP) will witness improvement due to continued recovery from the COVID-19 pandemic, the CEBR said. However, if inflation persists, it may be hard for policymakers to avoid tipping their economies back into recession, it added.