The world's economic output will exceed $100 trillion for the first time next year, two years earlier than previously forecast, a report released by a British consultancy, the Center for Economics and Business Research (CEBR) showed, on Sunday.
The CEBR's World Economic League Table 2022 prediction is in line with International Monetary Fund estimates, which also forecast that global GDP measured in dollars and in current prices will pass $100 trillion in 2022.
"The recovery is certainly much stronger," the CEBR said. It expected world economic growth to be at 5.5 percent in 2021, slightly above the 5.3-percent rise predicted a year ago, and at 4.2 percent in 2022, compared with the 3.4-percent increase forecasted a year earlier.
The British consultancy said in the report that in the second half of 2021, shortages of commodities, finished goods, shipping space and fossil fuel pushed the Federal Reserve into inflation.
"The important issue for the 2020s is how the world economies cope with inflation, which has now reached 6.8 percent in the U.S.," said Douglas McWilliams, deputy chairman of the CEBR.
"We hope that a relatively modest adjustment to the tiller will bring the non-transitory elements under control. If not, then the world will need to brace itself for a recession in 2023 or 2024."
(With input from Reuters)