Not surprisingly, the global economic recovery is continuing more quickly in regions where COVID-19 is under control and vaccinations have been widely rolled out. After an estimated contraction of 3.3% in 2020, the global economy is projected to grow at 6% in 2021, moderating to 4.4% in 2022, according to the International Monetary Fund (IMF).
Demand for manufactured goods remains strong, with the global aggregate Purchasing Managers’ Index (PMI) rising again to another decade high. Combined with persistent and widespread raw material and labor shortages, this is continuing to add to price pressures within the manufacturing sector. These appear to be being passed on, at least to a degree.