World Economic Forum: ‘2022 will be like navigating an obstacle course’

, said last week that the response to the pandemic-induced crisis so far “has been anything but orthodox”.

Georgieva added that policymakers should make policy flexibility their new year’s resolution. “Because 2022 is like navigating an obstacle course.” Stubbornly high inflation, Georgieva said, “is not just for central bankers to fight”. High inflation, she noted, is the result of supply-chain disruptions — worsened by surging demand by recovering economies — climate-related food price hikes, high energy prices and changes to the labour market.

She added that national responses to the pandemic, like low vaccination rates, stand to create “a very dangerous divergence” in the world economy, thus worsening supply-chain disruptions and inflation. The complicated set of problems arising from the pandemic and the world’s recovery from it may make 2022 a far more difficult year than 2020, Georgieva said. This is because, at the start of the pandemic, countries were fighting a single enemy. “In 2022, conditions in countries are very different.

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