Eurozone 2022 themes: Now for the hard part
The eurozone pushed on with a strong recovery in 2021, but in many ways that’s been the easy part. With reopening tailwinds mostly exhausted, the bloc will face different challenges in 2022.
What you will learn:
- We still expect another year of robust growth – close to 4% – but the recovery is likely to be choppy due to resurgent Covid risks, supply chains problems, and surging energy prices.
- Our expectation of strong growth continues to rest on consumer spending as we transition from public- to private-led demand growth.
- Supply chain issues are still a constraint for now, but we expect bottlenecks to recede next year.
BoK’s monetary policy to tighten even as hiking cycle ends
Even without rate hikes, central banks' monetary policies can effectively tighten if the nominal neutral rate falls below the policy rate. We expect this will be the case for the Bank of Korea this year, as the gap between the policy rate and the nominal neutral rate widens.Find Out More
Why China isn’t about to save the world economy
The earlier and faster than expected ending of zero-Covid restrictions in China bodes well for the global economy and adds to the recent run of positive news.Find Out More