Economic growth and recovery of inflation in the US and Eurozone, financial market records, economic crisis in Lebanon, COP 26, signing of a global agreement on taxation of multinational companies … 2021 was a prosperous event! Here are the top 10 economic news stories for the past year.
1. Revival of economic growth
After 2020, marked by an unprecedented global economic crisis, 2021 was characterized by an economic recovery. The return to economic growth is slowly and unevenly occurring in different parts of the world. Thus, the euro area has emerged from the recession from the second quarter of 2021 and has experienced a weaker recovery than the United States. On the other hand, China, one of the few countries that achieved positive growth in 2020, is a slower country than in the last decade. In France, economic growth should exceed 6% annually. Unmatched growth since the end of the 1960s !! However, this record must be taken into account in certain situations of a health crisis. France has only regained the level of economic activity it had at the end of 2019 …
2. Pursuit of cyclical economic policy
During 2021 Implementation of cyclical economic policiesFollowed by both finance and finance aimed at mitigating the effects of the economic crisis associated with Covid-19.
about Political budgetEspecially can be held Massive stimulus measures passed by US Congress Similar to the March presentation France 2030 investment plan In October, it aims to inspire innovation and strengthen the competitiveness of French companies. As a result of this budgetary support The amount of public debt has increased.. In France, half owned by non-residents, public debt now amounts to around € 2.674 trillion, or 116.4% of GDP. This level will need to be maintained for the next five years, and as long as interest rates remain low, there will be no sustainability issues.
Indeed, regarding Financial policyThe Central Bank continued to support the economy, especially at low interest rates, even negative for the European Central Bank (ECB) and securities buying programs. During the summer, the ECB announced a strategic review, with the following settings in particular: Medium-term inflation target 2%The central bank has suggested that it may temporarily allow price increases above this target to compensate for initial inflation of less than 2%.The recovery of inflation in the US and the euro area will eventually lead to the Federal Reserve (FED) and the ECB. Limit their monetary policy In the next few months.
3. Inflation recovery
2021 Inflation recovery in the US and euro area.. In these two economies, general price levels from 2000 to 2020 rose 2.1% and 1.7%, respectively, but in the United States, inflation has begun to rise again until it reaches an annual rate of 6.8%. And 4.9% in the euro area in November 2021. The main explanatory factors for this return to inflation:Rising energy pricesOil and natural gas, etc.
However, this return to inflation does not affect all developed countries. The main exception in this regard is Japan.Where prices continue to stagnate.
4. Record levels reached by financial markets
In France, as in the United States, Stock market reached last November, Record high. Thus, CAC 40, the flagship index of the Paris Stock Exchange, exceeded 7,000 points for the first time in history.Inspired by economic recovery and future profit outlook, this performance is primarily explained by Abundant cash On a global scale Expanded monetary policy implemented by central banks..
5. COP26 and climate issues
The 26th Conference of the Parties, or COP 26, Was held in Glasgow last November. The challenge was simple. We will carry out an initial assessment of the Paris Agreement adopted at COP21 in 2015 and strengthen international cooperation, especially in terms of limiting global warming to + 1.5 ° C. COP 26 is especially Fighting deforestation, gradual abandonment of coal or carbon neutralHowever, it proved insufficient to expect to limit global warming to + 1.5 ° C.
6. Poverty felt more intense in France
Even before the economic crisis associated with Covid-19 Nearly one in five French faced a situation of poverty or material and social deprivation... The impact of the 2020 recession is not yet known exactly, but poverty has felt more intense and worse in the past year, as evidenced by the surge in the number of people relying on food aid. And it seems.
7. Unemployment stagnation, but increasing number of job seekers
This is one of the 2021 paradoxes. During the year, France’s unemployment rate returned to pre-crisis levels. As in the fourth quarter of 2019, the unemployment rate is 8.1% of the active population. This paradox is partially explained by the implementation of measures to support employment and economic recovery. However, this relatively good news should not mask the deterioration, especially the increase, in many other indicators. Number of people with long-term unemployment and unemployment halo When Number of job seekers registered with Paul Amplois.. Finally, regarding unemployment, let’s point out that it will come into effect on December 1. New reward rules.
8. Bitcoin: A crypto asset that is increasingly being adopted, but still has very high volatility!
Bitcoin prices first set a new record in 2021. Very high volatility : Over the past year, Bitcoin has been trading between $ 24,000 and $ 58,000, and its price fluctuates at a significant rate from time to time. For example, the value of crypto assets fell by almost 15% on January 11th alone. This high volatility does not prevent Bitcoin from becoming more and more popular.became Official currency of El Salvador After summer Especially in developing countries, it is attracting more and more usersIt seems to provide residents with new possibilities for combating certain financial imbalances and new tools for international remittances.
9. Signing a global contract for taxation of multinational corporations
It has been discussed for many years within the framework of the Organization for Economic Co-operation and Development (OECD). Agreement on taxation of multinational corporations Signed by representatives from about 136 countries last October.This agreement specifically offers Improving tax fairness for multinational corporations And apply Minimum tax rate 15% multinational corporation. The agreement, which was granted thanks to the US reversal in April, shows clear progress.But don’t allow Put an end to all tax competition Interstate.
10. Significant crisis in Lebanon
We were already facing financial difficulties before the Covid-19 pandemic: a serious economic recession, a serious financial downturn, a massive currency depreciation, and a surge in inflation. Lebanon sank in 2021 in a serious crisis.. According to the World Bank, it is even the third most serious economic crisis the country has faced since the mid-19th century.When Century, behind Chile (1926) and Spain (1931), and long before the United States (1929-1933) and Greece (2009) …