South Korea | Reopening will spur consumption and the recovery
South Korea’s economy continues to recover despite the surge in Covid cases due to the Delta variant, and should enter 2022 on a firm economic footing. Next year, consumption and exports will be key drivers of growth.
What you will learn:
- A policy shift to “living with Covid-19” would lead to a sustained easing of restrictions, which would boost consumption, particularly of services.
- Demand for electronics and, as more economies reopen, the continuing global recovery will underpin Korean exports in 2022. But export growth will be less impressive than this year.
- Amid rising concerns over deepening financial imbalances and high inflation, monetary policy will likely be adjusted gradually to avoid a disorderly impact on households.
US: High debt costs suggest an industrial correction
The scale of the increases in debt costs, coupled with the low-yielding environment makes some repricing highly likely for gateway US industrial markets over the coming quarters.Find Out More
High debt costs suggest European office price correction
Our analysis suggests a 10% correction is needed on average for the major office markets in Europe to compensate for the higher cost of debt, with prime yields required to soften by 10bps-75bps to generate a low-risk interest coverage ratio at a reasonable LTV.Find Out More