- Global economic growth will be slower but still above trend in 2022. This forecast should allow equities to outperform bonds.
- Inflation has yet to peak, but it will likely decline over the year and as a result any central bank tightening will be modest.
- 2021 was a year of rebound and recovery; 2022 is likely to be a year of moderation for economic growth, inflation and investment returns.
- The global economy is poised for a second year of above-trend growth, although slower than 2021.
- We expect the spike in inflation is mostly transitory, although it could reach uncomfortably high levels in early 2022 before declining as supply-side issues are resolved.
For further details see:
2022 Global market Outlook - The Great Moderation