Higher energy prices won’t derail the global recovery
The global recovery from the pandemic will be dented but not derailed if high energy prices persist throughout 2022, our modelling finds. In an extreme scenario where oil, gas and coal prices remain elevated indefinitely, global growth would still be 4.0% and 2.8% in 2022 and 2023 respectively, knocking 0.5ppts and 0.7ppts off our baseline forecast.
What you will learn:
- We find that while some economies would suffer sizeable GDP impacts, the global impact is more moderate.
- Equities and bonds would take a sizeable hit however, as growth slows
- While we don’t see the recovery in global GDP being
derailed by higher energy prices, financial markets would
feel the effects much more keenly
Tags:
Related Services
Post
No signs of tariff-induced supply stress – yet
Our proprietary Eurozone Supply Stress Indicator shows that supply stress is still low, even after the US tariff announcement on April 2.
Find Out More
Post
Long term investors well placed for office upswing in Australia
Australian CBD office property capital values have taken a battering since mid-2022, falling by an average 18% for prime assets. In the process, capital values have fallen below replacement cost in many markets, which is constraining new commencements.
Find Out More