RIYAD: Global economic output is expected to exceed $ 100,000 billion next year, according to a report by UK consulting firm Cebr.
The report also says it will take longer than expected for China to overtake the United States as the world’s largest economy. He predicted that China will occupy that place in 2030, compared to 2028 in the previous report, according to Reuters.
It is also likely that the German economy will surpass that of Japan in 2033.
Russia is expected to become one of the world’s 10 largest economies by 2036 and Indonesia hopes to reach ninth place in 2034, the report adds.
Threat of inflation
The manager of the Norwegian wealth fund said financial markets are expected to post low returns over the next decade and inflation is the main hurdle ahead.
The fund has had an average rate of return of 6% for a quarter of a century, but lower returns are now expected and could turn negative, according to Bloomberg.
He said inflation affects several fronts such as freight rates, metal and food prices, construction costs and potentially wages. The CEO of the world’s largest fortune fund added that inflation could have more consequences than currently thought.
Turkey’s unconventional policy
Turkish President Recep Tayyip Erdogan has said the country will not rely on rising interest rates to fight inflation, saying some of the policies he launched last week have stabilized inflation in less than ‘a day.
The government will focus on economic growth, with an emphasis on investment, jobs, production, exports and a current account surplus, Bloomberg reported, citing Erdogan.
Japanese prices accelerate
Japan’s annual inflation rate reached 0.6% in November, after accelerating 0.1% the month before, official data showed.
The rise in consumer prices was attributed to a 9.2 percent rise in fuel, electricity and water costs, as well as a 1.4 percent increase in food prices. food.
If fresh food and energy prices are excluded, the annual rate would actually reflect 0.6% deflation.
In monthly terms, aggregate consumer prices in the country rose 0.3% in November.
Mexico’s GDP shrank 0.2% in October from a month ago, as the country continued to grapple with pandemic-related issues that stretched into the fourth quarter of this year. year.
In addition, it was the third consecutive monthly decline in economic activity, Reuters reported, citing figures from the country’s official statistics agency INEGI.
The country’s exports, in seasonally adjusted terms, hit a record high of $ 43.9 billion in November, inducing the first deficit in six months, valued at $ 463 million.
The central bank of China
The People’s Bank of China, China’s central bank, said the country’s real economy will receive more support and monetary policy will become more forward-looking.
The bank also aims to support the growth of the real estate industry, protecting the rights of home buyers and helping meet demand for housing, according to Bloomberg.