Barclays Expects World Economy to Grow At 6% This Year
The global economy is expected to grow at 6% this year, Barclays analysts said 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 and 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. The fading of the pandemic is an under-appreciated potential upside for 2022.”
Tags : INTERNATIONAL growth GDP Barclays brokerage Inflation Global economy World Economy Zero Tolerance