Barclays expects global economy to grow 6% this year

The Barclays logo can be seen on top of one of its branches in Madrid, Spain on March 22, 2016. REUTERS / Sergio Perez / File Photo

Nov. 18 (Reuters) – The global economy is expected to grow 6% this year, Barclays analysts said on Thursday, adding that the slow growth was still higher by standards of the past decade.

The brokerage expects growth to be led by advanced economies as longer-term bond yields remain anchored.

Here are the main points of view of the bank:

** The global economy is expected to grow by 4.4% in 2022.

** China is slowing and the brokerage is forecasting GDP growth of 4.7% in 2022, after 7.8% yoy in 2021.

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

** Barclays expects the pace of price increases to slow, particularly in the second half of 2022, as base effects kick in and goods inflation moves closer to trend.

** “We expect bond markets to remain confident in 2022 as inflation slows, labor supply bottlenecks ease and inflation expectations rise. medium term remain anchored. “

** Advances in medical treatments, including oral antivirals, could reduce pressure on hospitals, prevent further blockages, increase consumption of leisure and hospitality, and alleviate supply chain issues related to the pandemic.

** “The fading pandemic is an underestimated upside potential for 2022.”

Report by Tanvi Mehta in Bangalore; Editing by Shounak Dasgupta

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