Emerging Asia – which includes the economies of China, India, Indonesia, Thailand, the Philippines and Vietnam – will continue to be one of the most exciting regions among emerging markets in the next two decades, driven by a favourable demography, strong consumer class expansion, urbanisation, rapid technological adoption and digital transformation.
COVID-19 has accelerated online presence and integration of digital solutions to minimise physical human contact. With an abundant pool of IT and tech graduates, well-developed digital landscape and relatively competitive wages, Central and Eastern Europe and especially Poland are being eyed by potential investors as the next Silicon Valley.
In this webinar, we forecast global economic performance for 2022 and how this will impact the wider recovery of countries going forward.
The strong recovery of the global economy, combined with measures introduced to combat the COVID-19 pandemic, continue to result in supply bottlenecks and inflationary pressures during 2021. Manufacturers across the world have faced heightened input costs – the costs of materials, labour and other overheads devoted to the production of goods.
Global manufacturing output has recovered from the initial shock of the Coronarvirus pandemic, although supply chain disruption and rising prices continue to weigh on companies. Moreover, transportation problems are expected to extend well into 2022. To avoid future risks, manufacturers are investing in digital tools.
The global economic outlook for 2021 has worsened moderately since mid-2021, offset by slightly more optimistic recovery forecasts for 2022. Global real GDP is now forecast to increase by 5.7% in 2021 (a 0.2 percentage point downgrade since July 2021), and by 4.8% in 2022 (a 0.2 percentage point improvement relative to the July 2021 forecast). Since July, real GDP growth forecasts for 2021 have been significantly downgraded for the US, Canada, China, India, and other Asia Pacific economies, such as Indonesia and Australia.
Coronavirus has turbocharged a globalisation reset, revealing the fragility of global connectivity, and prompting countries and businesses to rethink their trade, investment and operation policies. Understanding these shifting forces and how globalisation is transforming will help business and investors prepare for the next phase of globalisation and the opportunities and challenges it will present.