World economy after COVID-19. This is what investors expect.
How will the financial markets develop in 2022? The good news for investors first: economic growth is continuing. At the same time, however, the world economy is facing major challenges. The economic forecast in Credit Suisse's Investment Outlook 2022.
Economic growth continues
The pandemic isn’t over yet, but vaccinations have at least brought some normalcy back. The upswing is likely to continue in 2022. Strong economic growth of 4.3 percent is expected. The reasons for this are as follows: solid demand, a supportive fiscal and monetary policy environment and further easing measures.
Inflation likely to peak
The rise in inflation was one of the central themes of 2021 and will continue to occupy us in the future. For 2022, the global inflation rate is expected to remain at an elevated level of 3.7 percent. The key question is how central banks will respond. Credit Suisse experts assume that many will initially reduce their purchases of securities. Interest rates, on the other hand, are likely to remain unchanged as long as inflation falls from 2021 levels.
Inflation rate in the US is likely to fall after 2022
Most of the recovery in prices lags behind the US. The base effects wear off.
Last data point: 09/2021