Citigroup forecasts global growth at 2.2% this year

Even though it is anticipated that the global economy will grow at its weakest rate in four decades, Citigroup experts have marginally increased their projection for global growth. The Wall Street brokerage headed by Nathan Sheets predicted that this year’s worldwide GDP will drop to 2.2%, up 25 basis points from their earlier prediction. The macroeconomic trends in the global economy are reportedly improving, which the economists believe is a factor in the forecast’s higher adjustment.

This year, the global economy is predicted to expand by 2.2%, up slightly from the 2.1% predicted in the prior estimate. But, the economists at Citigroup cautioned that due to rising inflation and supply chain disruptions, the global economy is still projected to expand at the weakest rate in 40 years. This has made it more difficult for firms to plan for the future and has increased uncertainty in the global economy. The IMF also issued a warning about the uneven recovery of the world economy, with some nations recovering more quickly than others.

Citigroup economists have raised their global growth forecast slightly, but the world’s economy is still expected to grow at the slowest pace in 40 years. Despite the economic challenges posed by the pandemic, some sectors have shown resilience, with the technology and healthcare sectors experiencing growth. However, the recovery will be uneven across sectors, and political risks could continue to rise, adding to the economic uncertainty. Despite signs of improving macroeconomic trends, factors such as rising inflation and supply chain disruptions could hamper the recovery.