Global Aviation Industry Keeps Pushing Ahead
22-09-22
Recovery in global air travel continues to support forecasts of a return to 2019 levels of traffic in 2024 at the aggregate level, IATA Chief Economist Marie Owens Thomsen told the World Financial Symposium.
Forward bookings continue to be strong, with international bookings accelerating despite lingering COVID-19 related travel restrictions in Asia, and especially in China.
Owens Thomsen noted that global GDP growth was expected to come in at around 3% this year, which is half the growth experienced in 2021. Emerging economies will bear the brunt of the challenges this creates. At the same time, “spectacular” job growth should help allay the impact of rising inflation and interest rates. Owens Thomsen also pointed out that high inflation translates into lower real interest rates even if nominal rates rise. High inflation also reduces the real value of debt.