The statistics on vaccine distribution seem to be improving just about everywhere, and as a more generalized reopening seems imminent, businesses are gearing up for a surge of activity.
Export Development Canada’s Global Economic Outlook is a must-read, packed with valuable information on the dynamics of this growth and its impact on the world’s key economies, commodity prices, interest rates and exchange rates.
We have revised up growth for 2021 in the U.S. economy to a whopping 7.1%. Emerging economies will see explosive gains as the industrialized world feeds global demand for goods and services. Collectively, emerging market growth will reach 6.5% this year and accelerate further to 6.8% in 2022. As such, world growth will hit an outsized 6.2% for 2021 followed by a very impressive 5.7% next year.
The rise in global demand will be the main driver in Canada’s near-term growth, which is forecast at a stunning 6.1% this year and an impressive 4% in 2022.
While the road will have a few bumps along the way, including a possible rise in inflation and skilled labour shortage, it’s going to be one of the most exhilarating economic rides we have seen in a long time.