The global economy is expected to grow at 6% this year, Barclays analysts said on Thursday, adding that the slow pace of growth was still heightened compared with the standards of the past decade.
The brokerage expects growth to be led by advanced economies with longer bond yields remaining anchored.
Here are the bank’s main views:
** World economy likely to grow 4.4% in 2022.
** China is slowing and the brokerage expects GDP growth of 4.7% in 2022, after 7.8% y-o-y in 2021.
** “China’s zero tolerance approach to COVID-19 means lockdowns will continue to hurt activity.”
** Barclays expects the pace of price rises to decelerate, especially in the second half of 2022, as base effects come into play and goods inflation moves closer to trend.
** “We expect bond markets to keep the faith in 2022 as inflation decelerates, labour supply bottlenecks ease and medium-term inflation expectations stay anchored.”
** Progress on medical treatments, notably oral anti-virals, could reduce the strain on hospitals, prevent new lockdowns, increase leisure and hospitality consumption, and mitigate pandemic-related supply chain problems.
** “The fading of the pandemic is an under-appreciated potential upside for 2022.”
(Reporting by Tanvi Mehta in Bengaluru; Editing by Shounak Dasgupta)