Global News Of Note: Rising Inflation, Worker Shortages Will Harm World Growth

What happens abroad impacts MSCI members in North America. Here is the latest economic, trade, and other policy news of note for the last week:

• The United Nations (UN) forecasts lower global economic growth for 2022 and 2023 due to an increase in coronavirus infections, persistent labor market challenges, supply chain challenges, and rising inflation. After expanding 5.5 percent in 2021, the highest rate of global economic growth in about 40 years, the UN expects the world economy to expand just four percent in 2022 and 3.5 percent in 2023. Read the full report here.
• China’s global trade surplus surged to $676.4 billion in 2021. According to The Associated Press, that volume was likely the highest ever for any country. The surplus expanded 20.8 percent between November and December alone. Exports from China to the rest of the world were up 29.9 percent in 2021. China’s surplus with the United States increased by 25.1 percent in 2021 over a year earlier to $396.6 billion. Exports to the United States rose 27.5 percent.
• As the Hellenic Shipping News reported, China’s steel output declined in 2021 because of the country’s efforts to reach its carbon neutrality goals. Output in 2021 was 1.03 billion tons, a 35 percent reduction from 2020. According to the China Iron and Steel Association, while infrastructure investment is likely to increase in 2022, total steel demand is likely to remain the same as last year. Despite the decline in output, China’s steel exports rose by 3.6 percent between December 2020 and December 2021 and 15.2 percent from November to December 2021. Caixin Global has more on how China’s emissions standards might impact its steel output.
• Global aluminum, copper, and steel users indicated a further improvement in operating conditions in December. Read those reports here.