The global economic recovery is set to continue through 2022, but the pace of growth will be tempered by the Delta variant and ongoing supply chain disruptions. The world economy is on track to expand by 5.6 percent in 2021 and a further 4.9 percent in 2022.
The United States is still enjoying the fastest recovery of any advanced economy because of its early access to vaccines and vigorous fiscal response to the pandemic, but all large advanced economies are poised for brisk increases in economic activity. The United Kingdom and euro area have solid fundamentals that should propel their recoveries as supply chain constraints slowly ease. Faster vaccination rates and additional fiscal stimulus will strengthen Japan's recovery.
China's growth prospects are the brightest among large emerging-market economies. India is recovering briskly but has much ground to make up after its steep decline in economic activity in 2020. Russia's plans to increase spending make further economic recovery likely, and Brazil's growth will slow next year amid political turbulence surrounding the election.
This PIIE Chart was adapted from Karen Dynan's blog, Global economic recovery remains on track despite Delta variant and supply chain problems.