Contribution to global GDP growth

Sources: International Monetary Fund and Wells Fargo Investment Institute, as of December 31, 2021. G7 countries include Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. GDP = gross domestic product.

Key Takeaways

  • Global fallout from the war in Ukraine and the pandemic are expected to lower 2022 world economic growth to a rate below its long-term 3.8% average. Europe is most exposed to the war’s economic impact. However, all areas likely will be hurt, on balance, by some combination of dollar strength, the spike in commodity prices, and aggravated supply-chain disruptions.
  • We are still counting on a global growth recovery by next year in response to a reopening from the latest wave of the pandemic and with adjustment to war-related disruptions.