PIIE Forecasts A Low 3.3% Global Economic Growth For 2022

The Peterson Institute for International Economics (PIIE) has forecast global economic growth to sag to 3.3% this year and in 2023.

Photo Insert: Global economic growth is forecast to slow from 5.8 percent in 2021 to 3.3 percent in 2022 and 2023.

In a report written by Karen Dynan, Chad P. Bown, and Steven Fries late on April 13, 2022, PIIE said the forecast means a reversal from the gains achieved recently, with COVID-19 episodes, higher inflation, and war in Ukraine weighing on global output.

In its semiannual economic outlook, PIIE also marked down growth prospects for the United States as persistent inflation requires faster monetary policy tightening.

US GDP could grow by 3 percent this year and a further 2 percent in 2023, 1-½ percentage points lower than the October forecast while core inflation will ease gradually to 4 percent this year and 3 percent in 2023.

Global economic growth is forecast to slow from 5.8 percent in 2021 to 3.3 percent in 2022 and 2023. Tighter US monetary policy will end worker shortages and raise unemployment to 4.5 percent by the end of next year, but will also raise the risk of recession.

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