Global recovery strengthening slightly
According to the Bank of Canada, the global economy will grow by 6.9% in 2021 after contracting by 2.4% in 2020
By Rob Roach, ATB Economics 15 July 2021 1 min read
According to the Bank of Canada’s latest Monetary Policy Report, the global economy will grow by 6.9% in 2021 after contracting by 2.4% in 2020. Global GDP will then increase by 4.4% in 2022 and by 3.2% in 2023 as the “effects of policy stimulus on growth fade.”
The forecast is a tich higher than the one released in April with global GDP coming in 0.3% higher by the end of 2023 than previous estimate. That’s not a huge difference, but every little bit counts.
It’s important to note that the forecast could be thrown off course if a fourth wave of the virus driven by variants develops.
The Bank also notes the recovery “will likely continue to be uneven across countries and sectors. In advanced economies, recoveries are on a more solid footing than they are in [emerging-market economies], reflecting elevated vaccination rates and greater policy support.”
After contracting last year by 5.3%, the Bank’s forecast for Canada pegs growth this year at 6.0%. GDP will continue to expand in 2022 by 4.6% and in 2023 by 3.3%.
Given Alberta’s reliance on oil exports, the strong growth forecast for the United States—which absorbs virtually all of our international oil exports—is particularly important. The same is true for the strong growth expected in China and the oil-importing emerging-market economies as it helps support the global demand for oil.
Answer to the previous trivia question: According to Investopedia, the state-owned Industrial and Commercial Bank Of China Ltd. is the largest commercial bank in the world in terms of total assets under management.
Today’s trivia question: The United Kingdom withdrew from the European Union on January 31, 2020. How many member countries does that leave?