What You Need to Know

Entering 2022, COVID-19’s lingering shadow continues to snarl global supply chains while idle workers remain choosy in rejoining the labor force. Meanwhile, inflation persists, which leaves policymakers in the awkward position of tightening without pushing economies back into the sluggish pre-pandemic growth environment.

Key Forecast Trends

  • Our outlook for 2022 reflects our belief that tighter monetary policy will have an impact on the global economy, particularly with fiscal support waning.
  • We expect growth to slow significantly from the heady levels of 2021, driven largely by tighter policy and fading fiscal support.
  • Overall return levels are likely to be lower in 2022 compared to 2021, but the global growth outlook is solid enough to prevent financial markets from rolling over completely.
  • Emerging-market central banks have begun the tightening process, with more to come, but we see scope for EM to regain a meaningful growth differential with the developed world eventually.

Past performance, historical and current analyses, and expectations do not guarantee future results. There can be no assurance that any investment objectives will be achieved. The information contained here reflects the views of AllianceBernstein L.P. or its affiliates and sources it believes are reliable as of the date of this publication. AllianceBernstein L.P. makes no representations or warranties concerning the accuracy of any data. There is no guarantee that any projection, forecast or opinion in this material will be realized. Past performance does not guarantee future results. The views expressed here may change at any time after the date of this publication. This document is for informational purposes only and does not constitute investment advice. AllianceBernstein L.P. does not provide tax, legal or accounting advice. It does not take an investor’s personal investment objectives or financial situation into account; investors should discuss their individual circumstances with appropriate professionals before making any decisions. This information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service sponsored by AB or its affiliates.

The views expressed herein do not constitute research, investment advice, or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams.

MSCI makes no express or implied warranties or representations, and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI.

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