Inflation, supply chain resilience, RCEP and CPTPP
By Song Kyung-jinThe buzzword in the global economy at the moment is “inflation.” The global economy is projected to grow 4.7 percent in 2022 from 6.1 percent (estimated) in 2021, according to the Morgan Stanley real gross domestic product (GDP) forecasts. GDP growth outlook for 2022 of major economies is also set to moderate from 2021, with the U.S. slowing down to 4.6 percent from 5.5 percent, China to 5.5 percent from 7.8 percent and India to 7.5 percent from 8.9 percent. The Korea Development Institute forecasts the Korean economy to expand 3 percent in 2022, roughly 1 percentage point higher than its growth potential and down from an estimated 4 percent growth in 2021. While the global economy is returning to normal, inflation will likely persist due to continued disruptions to the supply chain and higher energy prices due to the green energy transition with the aim of achieving carbon neutrality by 2050.On concerns of high inflation that remained far above the 2 percent target from April 2021, recording 3.7 percent in December year-on-year, the Bank of Korea raised
