Increasing vaccination rates as well as continuing fiscal stimulus and monetary accommodation, according to the research, have contributed to the global economy’s resurgence.  In particular, the IFF forecasts that the world economy will expand 5.95% this year, returning to pre-pandemic 2019 levels. After seeing a robust resurgence in the first half of this year, the global economy has slowed in the second, owing to outbreaks of the more infectious Delta and Omicron variant of the virus occurring throughout most of the globe.  It is also worth mentioning that according to data acquired by Finbold, four major central banks increased their Quantitative Easing programs by $9 trillion during the pandemic (between January 2020 and November 2021) to help their economies. A total of $3.4 trillion was handled by the US Federal Reserve and the European Central Banks. The Bank of Japan comes in third with $1.6 trillion.

Consumer inflation predicted to decline in 2022

Many nations have seen price increases as a result of the rapid recovery. Based on the most recent predictions from the IFF, global consumer price inflation would hit 4.5% this year and decline to 3.8% in 2022 as demand-supply imbalances close further. IFF’s head economist and a former Asian Development Bank deputy chief economist, Zhuang Juzhong, stated: Juzhong added:

Global economy to grow 4.7% in 2022

As per the IFF research, the global economy would rise 4.7% in 2022 due to continued fiscal and monetary policies and increased vaccine coverage. Nevertheless, greater and more persistent inflation may force advanced nations to change monetary policy direction, IFF cautioned, adding that geopolitical concerns may further slow the recovery.  In the study, IFF also noted that the epidemic has interrupted the global campaign against extreme poverty and has exacerbated economic disparity throughout the world.  Overall, improving vaccine uptake, maintaining monetary policy stability, reducing trade tensions, developing green financing, and supporting low-income countries are all priorities for IFF.