Barclays Forecast 6% World Economic Growth This Year

Barclay’s analysts have forecasted world economy growth at 6% for 2021, higher than last year’s growth figure but still affected by the pandemic. The firm has indicated advanced economies with longer bond yields will take the lead in growth.

Barclays has forecasted the following:
- World economy will see a growth rate of 4.4% in 2022
- China is slowing economic growth and may see GDP of 4.7% next year, after 7.8% year on year in 2021
- The zero-covid approach adopted by China will lead to more lockdowns and decline in economic activity
- The growth rate of inflation is likely to slow down during second half of next year
- Supply chain disruptions and bottlenecks will ease with medium-term inflation
- Bond markets are expected to remain steady for next year even with slowing inflation
- Medical treatments will see advancement in areas of oral anti-viral medication
- The pandemic may start fading, increase in leisure activity and fewer lockdowns

©Photo: REUTERS/Simon Dawson