World economy now set to surpass $135 trillion in 2022

The Centre for Economics and Business Research also predicted that China will overtake the US as the world's largest economy in 2030.
The Centre for Economics and Business Research also predicted that China will overtake the US as the world's largest economy in 2030. PHOTO: NYTIMES

NEW YORK (BLOOMBERG) - The world economy is set to surpass US$100 trillion (S$135.91 trillion) for the first time in 2022, two years earlier than previously forecast, according to the Centre for Economics and Business Research (CEBR).

Global gross domestic product will be lifted by the continued recovery from the pandemic, although if inflation persists, it may be hard for policymakers to avoid tipping their economies back into recession, the London-based think-tank said.

"The important issue for the 2020s is how the world economies cope with inflation," said CEBR deputy chairman Douglas McWilliams.

"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."

In its annual World Economic League Table, the CEBR also predicted that China will overtake the United States as the world's largest economy in 2030, two years later than forecast a year ago.

Meanwhile, India will regain sixth position from France next year and become the third-largest economy in 2031, a year later than previously predicted.

The United Kingdom is on track to be 16 per cent larger than France in 2036 despite Brexit, while Germany will overtake the Japanese economy in 2033.

The CEBR also said climate change will lower consumer spending by US$2 trillion a year on average through 2036 as companies pass on the cost of decarbonising investments.

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