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Barclays expects world economy to grow at 6% this year -Breaking

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© Reuters. FILE PHOTO – The Barclays logo is visible on top of a branch of Barclays in Madrid (Spain), March 22, 2016. REUTERS/Sergio Perez/File Photo

(Reuters) – The world economy will grow by 6% in the coming year. Barclays On Thursday (LON,) analysts stated that while growth is slow compared to previous decade standards, it was still high.

According to the brokerage, growth will be driven by mature economies that have longer bonds yields and are anchored.

These are the main points of view for the bank:

** World economy likely to grow 4.4% in 2022.

** China is slowing and the brokerage expects GDP growth of 4.7% in 2022, after 7.8% y-o-y in 2021.

** “China’s zero tolerance approach to COVID-19 means lockdowns will continue to hurt activity.”

** Barclays expects the pace of price rises to decelerate, especially in the second half of 2022, as base effects come into play and goods inflation moves closer to trend.

** “We expect bond markets to keep the faith in 2022 as inflation decelerates, labour supply bottlenecks ease and medium-term inflation expectations stay anchored.”

** Progress on medical treatments, notably oral anti-virals, could reduce the strain on hospitals, prevent new lockdowns, increase leisure and hospitality consumption, and mitigate pandemic-related supply chain problems.

** “The fading of the pandemic is an under-appreciated potential upside for 2022.”

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