PwC report Global Economy Watch: Predictions for 2021

The PwC report Global Economy Watch has made some predictions for the year 2021. Amongst them are:

-The global economy will experience a 5% growth this year.

-The issued value of green bonds will surpass $500 billion.

-Public debt levels in G7 will exceed $57 trillion…

The report has also projected that oil price is to remain below $60bbl, but will likely pick up in second half of the year.

“Even though oil prices have lately recovered from the lows in 2020, we think that they will continue to remain relatively subdued. Barring any shocks or geopolitical developments in the Middle East, demand for oil, particularly from the Northern Hemisphere economies, is likely to remain subdued for the first six months of the year (even though it has recently picked up in China).

“It is more likely to increase in the second half of 2021 as the COVID-19 vaccine becomes more widespread and economic activity accelerates.

“A similar pattern is expected for oil production levels, with supply expected to remain far below pre-crisis levels in the first half of the year before gradually increasing as demand returns.

…but electricity production from renewables is projected to continue to gather momentum:

“Despite fossil fuels being the dominant source of electricity generation we continue to expect that solar PV (Solar Photovoltaics) capacity will grow at rapid rates on the back of growing capacity in the EU, India and China. If current trends continue, solar PV capacity is on course to surpass natural gas in 2023 and coal in 2024 in the global electricity sector”, according to the report.

 Amaka E. Nliam