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 is expected to lower world economic growth to a rate below its long-term 3.5% average in 2022 and 2023. Europe is most exposed to the war’s economic impact. However, all areas are vulnerable to some combination of dollar strength, the spike in commodity prices, and aggravated supply-chain disruptions.
  • We are still counting on a global growth recovery later next year, responding to slowing inflation, reduced disruptions from the pandemic, and a gradual adjustment to war-related disruptions.