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. facebook linkedin twitter youtube email print