Record-high inflation in advanced economies is turning up the heat on central banks. With average wages set to rise significantly in 2022, they face a difficult choice: overlooking the overshoot to protect the post-Covid recovery or tightening quickly to stave off a potential wage-price spiral that would add fuel to the fire.
Global growth should remain robust but uneven, with rising divergence between advanced and emerging market economies. However, just like in the eponymous movie, whose title we borrowed for this report, current growth dynamics might keep us from looking up during the current phase of the recovery.
After a decade of declining capital spending, public infrastructure investment is surging in the US and Europe. Scaling up spending on infrastructure has become an essential element of the fiscal stimulus to boost economies after Covid-19.
Even before Covid-19 upended our lifestyles, social and political risk were already on the rise in a number of countries and regions, largely due to the mismanagement of social protection. How has Covid-19 changed social risk?
Global supply-chain disruptions will remain high until H2 2022, on the back of renewed Covid-19 outbreaks globally, China’s continued zero-Covid policy and demand and logistic volatility during Chinese New Year.
The EU faces an implementation gap of six years in cutting greenhouse gas emissions from the energy sector by 2030. Decarbonizing the energy sector is crucial to achieve the net-zero target as nearly three-quarters of the EU’s total greenhouse gas emissions originate from the production and use of energy, notably from fossil fuels such as coal, oil and gas.
