The OECD has estimated that $6.9 trillion in investment will be needed globally by 2030, across energy, transport, building and water infrastructure, to meet world climate and development goals. The global economy will need to reduce carbon emissions by 45 percent by 2030, reaching net zero emissions around 2050. The OECD also estimates that $460 billion per year is needed to decarbonise the global energy system and achieve the 1.5 degree target.
By 2050, the Philippines, Thailand and Malaysia will have a significantly lower GDP growth and lower wealth. This is compared to today. By the end of the century, vaccinations are expected to be widely used and the world’s population will be more than half vaccinated. By the end of the decade, the world economy is expected to grow at its fastest rate since 1984. The COVID-19 pandemic will continue to affect many countries and regions, affecting the global economy.
Rising temperatures will hinder global economic growth. In addition to reducing agricultural output, rising temperatures will make it more difficult to manufacture goods. According to a study by the National Bureau of Economic Research, persistent global temperature increases will reduce real GDP per capita by 7.2% by 2100. That is why investing in climate-related assets is so important for institutional investors. With long-term capital commitments and liabilities, they will need to invest in infrastructure to keep the world’s climate within the 2degC target.
If the world continues to experience global warming at the same pace as in recent years, a quarter of the world’s GDP will be contributed by the United States. Despite the massive fiscal stimulus, the U.S. economy is expected to grow 6.8% this year, its fastest rate since 1984. China’s economy is not expected to contract this year, but will probably moderate to minimize risks to financial stability.
Although the United States has contributed one-fifth of global growth in recent years, it is still expected to continue to struggle with COVID-19. The eradication of COVID-19 will likely affect economic activity in many regions of the world, including the U.S. and India. But the United States will also contribute the most in 2021, as it is the largest economy. By 2050, the world’s GDP will grow at the fastest rate since 1984.
The OECD says that the United States will contribute a quarter of the world’s growth by 2021. The country is expected to continue to boost its economy by 6.8% this year. That is the fastest growth rate since 1984. However, China’s economy is expected to contract a bit last year, but will remain well above the pre-infection level in 2021. This could have a huge impact on the global economy.
