Japan's Economy and Monetary Policy (1)
The growth rate of the global economy saw a substantial decline of 3.1 percent for 2020 due to the spread of the novel coronavirus (COVID-19) but registered high growth of 6.1 percent for 2021, mainly on the back of the widespread vaccinations. The latest World Economic Outlook released by the International Monetary Fund (IMF) shows that, although they are projected to decelerate from the growth rate for 2021, the global economic growth rates for both 2022 and 2023 are expected to be 3.6 percent, staying at around the long-term average. However, this outlook entails high uncertainties, and the following three factors warrant particular attention.
The first is heightened geopolitical risks as a result of Russia's invasion of Ukraine. Since Russia and Ukraine together only account for about 2 percent of the global GDP, the direct impact of these countries' economic downturns on the global economy is limited.
That said, in terms of their export shares in commodities, Russia accounts for 12 percent and 19 percent of global exports of crude oil and natural gas, respectively. In addition,
