RIYADH: The Confederation of British Industry on Monday revised the economic growth forecast for 2022 to 5.1 percent from the earlier estimate of 6.1 percent.
The group also trimmed the forecast for 2021 to 6.9 percent from an earlier 8.2 percent. It cited supply chain disruptions and a need for government support as reasons for the trimming of forecasts.
Household spending will account for 90 percent of growth in 2022 and two-thirds of that growth in the following year. This is attributed to a healthy job market and savings built up during the pandemic. On the other hand, exports will remain weak.
Moreover, it appears that business investment will grow by 8.2 percent next year, exceeding the pre-pandemic level.
Upbeat construction sector in Europe
The eurozone’s construction sector grew notably in November as its Purchasing Managers’ Index went up to 53.3 compared to 51.2 in the previous month, IHS Markit said.
This is the highest expansion in the sector since February 2018 and was attributed to stronger demand in the region. Home building activity continued its upward trend while commercial construction rose for the second month in a row. Civil engineering deteriorated, albeit at a weaker rate compared to before.
Similarly, UK output in the construction sector expanded at the highest rate in four months in November, according to the London-based firm.
Upswings in commercial work, following the opening of the economy, were mainly the reason for the growth in construction.
The index reached 55.5 in November, the 10th consecutive month in which the indicator recorded above-50 levels.
House building in the country also grew, yet at a slightly slower pace.
Japanese economic growth
The Japanese government is contemplating a hike in its 2022 fiscal year growth forecast following its $490 billion stimulus package, according to Japanese broadcaster NHK on Monday.
The government predicts real gross domestic product to grow by about 2.2 percent for the fiscal year beginning in April 2022.
Japan has stayed behind in recovering from the pandemic compared to other countries. This has forced the government to introduce generous spending plans.
Italy’s retail sales
Estimates of the seasonally adjusted index of retail trade in Italy increased slightly month on month by 0.1 percent in value and 0.2 percent in terms of volume for November, according to the country’s official statistics agency.
The value of sales increased by 1.4 percent in the three months ending in October compared to the previous three-month period while volume went up by 1 percent.