In 2021, the global economy underwent significant changes caused by the effects of the
COVID-19 pandemic and other factors. Here are the main business and financial
developments of the year:
Economic growth:

• According to the World Bank, global growth accelerated to 5.6% in 2021, driven mainly by
  strong recoveries in major economies such as the United States and China.
  Inflation:
• In the second half of 2021, many countries faced a significant increase in inflation, partly
  caused by pandemic disruptions and an increase in the money supply.
  Risks of stagflation:
• The World Bank has warned of a growing risk of stagflation due to a sharp slowdown in
  growth and rising inflation.
  Stock markets:
• Stock markets showed volatility due to concerns about inflation and economic recovery.
  For example, UK retail sales unexpectedly fell by 0.9% in August 2021, indicating a shift in
  consumer spending.
  Evergreen crisis:
• In August 2021, Chinese real estate developer Evergrande faced a liquidity crisis with over
  $300 billion in debt, raising concerns about the stability of the Chinese real estate market
  and the potential impact on the global economy.
  These developments highlight the complexity and interconnectedness of the factors
  affecting the global economy in 2021 and the importance of businesses and financial
  institutions adapting to rapidly changing conditions.