Global GDP levels are now forecast to exceed $100 trillion come next year, as economic effects stemming from the Covid-19 pandemic are expected to abate quicker than previously expected.

According to a new report from the Centre for Economics and Business Research (CEBR) published on Sunday, analysts have upgraded their growth forecasts for the global economy, which is now expected to reach $100 trillion in output for the first time in history come 2022, rather than in 2024 as previously anticipated.

The analysts cited a faster-than-expected improvement in the economic effects of the pandemic, while a “much improved immunity in many countries allows for less harsh restrictions, whilst greater economic adaptability means that renewed restrictions cause less of a blow than [previously].” However, the report highlighted the growing issue of inflation, which could become a forefront problem over the coming years.

“The important issue for the 2020s is how the world economies cope with inflation, which has now reached 6.8% in the US,” said CEBR Deputy Chairman Douglas McWilliams, as cited by Reuters. The report also warned that if the non-transitory elements currently driving price pressures do not abate anytime soon, then the world could face a recession in 2023 and 2024.

Information for this briefing was found via CEBR. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.