The post pandemic recovery has not been straightforward as the reimposition of restrictions across Australia, New Zealand and many large economies weigh on global growth.
While some restrictions remain in place, countries have begun to vaccinate their populations, leading to a step-by-step return to normality. The economic reopening unleashed huge pent- up demand, leading to a strong pickup in economic activity. Although some of that economic momentum was lost going into the end of the year on the back of the Delta and Omicron virus mutations, supply- chain disruptions, higher energy prices and weaker growth in China, we believe the economic recovery will continue in 2022.
Strong income growth, coupled with healthy consumer balance sheets, should support consumption. We are also seeing encouraging signs on the investment front, with businesses engaging in capital-intensive projects. Governments are not planning to tighten their belts as aggressively as they did in the wake of the global financial crisis, with government spending and investment set to remain elevated. All of that creates a positive macroeconomic backdrop for the year ahead.
Download the full Economic and Market Outlook 2022 paper to find out more.
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