In 2023, central banks tightened policy severely, hoping their actions would return their economies to normal without causing a sharp recession in the process. We think policymakers will largely achieve their goals in 2024 and 2025, and we will let historians decide whether this was by luck or good judgment. We think labor markets, wage growth and inflation will return to somewhere near normal levels as a period of policy-induced weak growth rebalances labor markets and economies as a whole.
Read MoreGlobal economic growth picked up in the second half of 2021 following the lifting of mobility restrictions, and is forecast to remain above trend in 2022. The rapid spread of the Omicron variant of COVID-19 has been disruptive but is not anticipated to have a large or sustained impact on growth. Inflation in many countries has persisted at multi-year highs and has broadened in scope. Central banks in advanced economies still expect inflation to moderate, but have raised their inflation forecasts for 2022 and have emphasised the considerable uncertainty surrounding this outlook.
Read MoreRead to learn more about what’s happening both locally and globally in the world of finance. In what has been a volatile 24 months, as the world tries to break free of COVID-19, its important to stay aware of the latest market movements and trends.
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