Following the economic decline in the previous year as a result of the COVID-19 pandemic, the economy normalized in all regions across the world in 2021. In addition to the increasing number of coronavirus vaccinations, the economic stimulus programs in certain major economies also contributed to this recovery. According to the January 2022 World Economic Outlook Update (WEO Update) published by the International Monetary Fund (IMF), the global economy grew by 5.9% in fiscal 2021. This slightly exceeded the IMF’s forecast of 5.5% growth from January 2021.
In the eurozone, gross domestic product (GDP) rose by 5.2% compared to the previous year’s figures in 2021 according to statistical office Eurostat. Of the major eurozone economies, France, Italy and Spain reported strong growth rates of around 5% to just under 7% in 2021 according to the IMF, after experiencing steep declines in GDP in the previous year. In Germany, according to the Federal Statistical Office, GDP rose by 2.7% in 2021. Other major European economies also recorded high growth rates for their economic output. For the UK and Russia, the IMF estimated GDP growth in 2021 of 7.2% and 4.5%, respectively.
In North America, according to the Bureau of Economic Analysis, the USA reported GDP growth of 5.7% for 2021. For Canada and Mexico, the IMF estimated GDP growth of 4.7% and 5.3%, respectively. Other countries in the Americas also recorded an economic recovery in 2021. For Brazil, for example, the IMF reported GDP growth of 4.7%.
Asian countries also recorded an economic revival in the year under review according to the IMF. Very high growth rates were achieved in 2021 by India’s economy, with growth of 9.0%, and China’s economy, with GDP growth of 8.1%. According to the IMF, lower growth rates were reported for the Association of Southeast Asian Nations (ASEAN) and for Japan, with GDP growth of 3.1% and 1.6%, respectively.
Year-on-year economic growth (GDP) in 2021 (for selected countries and the world)
Sources: IMF – World Economic Outlook Update January 2022, Eurostat, statistical offices of the respective countries, Bloomberg.
