Covid-19 has proven We need to face the deep flaws in the global economic system.But without strong economic growth, the world will find it difficult to get rid of Pandemic, Not to mention reforming the global economy in ways that are better for everyone. In 2022, global economic growth will stagnate, and the economic growth of many advanced and developing economies will not reach the critical threshold of 3% required to double per capita income.
Next year, as most parts of the world have not yet been vaccinated, global trade and investment will continue to be disrupted, and it will be difficult to restart global economic growth.
To make matters more complicated, the tools traditionally used by the government to initiate recovery have been widely used, and the ability of policies to promote growth is reaching its limit. Interest rates in the U.S. and U.K. have been at historically low levels, while Europe and Japan have been at negative rates. Many countries are heavily in debt. In 2020, the debt-to-GDP ratio of the United States and the United Kingdom will exceed 100%.
These rising national debt ratios may limit public spending and the government’s ability to provide public goods such as education, healthcare, infrastructure, and national security, thereby further reducing the possibility of meaningful economic growth.
Even before the pandemic, various factors hindered economic growth. In 2022, these will continue: a surge in automation and technological progress, which may lead to mass unemployment; demographic changes, including rapid population growth; climate change; And increasing inequality.
The advent of the global pandemic has exacerbated many of these concerns, and has complicated the ability of governments to promote economic growth in a fair and sustainable manner. Unequal vaccination rates across the world-mainly between developed and developing countries-have further exacerbated inequality and delayed economic recovery. In Africa, which accounts for nearly 20% of the world’s population, the vaccination rate hovers around 1%. Throughout 2022, people in many parts of the emerging world may remain largely unvaccinated, increasing their risk of exposure to new and more infectious mutations.
In view of the comprehensive nature of the world economy, next year emerging economies will not see the economic rebound that many developed regions have already experienced in 2021, which means that global economic growth will remain low and slow down. Many advanced economies have restarted with the support of large-scale vaccination and government stimulus packages. However, if the emerging economies do not recover, this recovery will not be sustainable. Developed countries cannot maintain their economic status if they cannot sell goods and services abroad.
Next year, we will see more clearly how the fate of the world economy is intertwined. As long as developed countries and developing countries are on two different tracks, it is impossible to achieve any hope of global economic recovery.
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