The world’s economic output next year is forecast to exceed $100 trillion for the first time, according to a report by the British consultancy Cebr and it will take China a little longer than previously thought to overtake the United States as the world’s largest economy.

The report predicted that China will become the world’s top economy in dollar terms in 2030, compared to 2028 in the earlier report, according to Reuters. It is also likely that Germany’s economy will outperform Japan’s in 2033.

Cebr Deputy Chairman Douglas McWilliams said: “The important issue for the 2020s is how the world economies cope with inflation, which has now reached 6.8% in the US.”

“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.”
Cebr Deputy Chairman, Douglas McWilliams

Also, Russia is set to become one of the 10 biggest economies in the world by 2036 and Indonesia is looking forward to the ninth place in 2034. India looks set to overtake France next year and then Britain in 2023 to regain its place as the world’s sixth biggest economy, Cebr said.

The head of Norway’s wealth fund said that financial markets are set to experience weak returns in the next decade and that inflation is the main hurdle ahead.

The Fund had an average rate of return of 6 percent for a quarter century, but lower returns are now expected and might turn negative, according to Bloomberg.

Turkey’s President Recep Tayyip Erdogan said that the country won’t rely on raising interest rates to combat inflation, indicating that some of the policies he launched last week stabilized inflation in less than a day.

The government will shift its focus to economic growth, emphasizing investment, employment, production, exports and a current account surplus, Bloomberg reported, citing Erdogan.

Rising Consumer Prices Spiking Inflation

Annual inflation rate in Japan hit 0.6 percent in November, 2021, accelerating from 0.1 percent in the previous month, official data showed.

The rise in consumer prices was attributed to a 9.2 percent hike in costs of fuel, light and water charges, as well as a 1.4 percent increase in food prices.

If fresh food and energy prices are excluded, the yearly rate would actually reflect a deflation of 0.6 percent. In monthly terms, overall consumer prices in the country went up by 0.3 percent in November, 2021.

Mexico’s GDP narrowed by 0.2 percent in October compared to a month ago, as the country continued to grapple with pandemic-related issues which stretched into the fourth quarter of this year.

In addition, this was the third consecutive monthly slump in economic activity, Reuters reported, citing figures from the country’s official statistics agency INEGI.

The country’s exports, in seasonally adjusted terms, hit an all-time high of $43.9 billion in November, inducing the first deficit in six month, valued at $463 million.

The People’s Bank of China, the Chinese central bank, said that the country’s real economy is set to receive more support, and that monetary policy will become more forward-looking.

The bank also aims to prop up the property sector’s growth, safeguarding the home buyers’ rights, and helping in meeting housing demand, according to Bloomberg.