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Global economic growth will be slower but still above trend in 2022. This forecast should allow equities to outperform bonds.

Inflation has yet to peak, but it will likely decline over the year and as a result any central bank tightening will be modest.

2021 was a year of rebound and recovery; 2022 is likely to be a year of moderation for economic growth, inflation and investment returns.

The global economy is poised for a second year of above-trend growth, although slower than 2021.

We expect the spike in inflation is mostly transitory, although it could reach uncomfortably high levels in early 2022 before declining as supply-side issues are resolved.

Global economic growth will be slower but still above trend in 2022. This forecast should allow equities to outperform bonds. Inflation has yet to peak, but it will likely decline over the year and as a result any central bank tightening will be modest.

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