FAB Launches 2022 Global Investment Outlook Report
First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and safest financial institutions, has published its 2022 Global Investment Outlook. The report, written by the bank’s industry experts, examines the current global economic and investment environment, providing insights into key macro-economic trends.
The report analyses the impact of the supply chain crisis in 2021 noting that the significant effort that factories across the world made to produce greater quantities, quicker to meet the spike in demand could turn the supply shortfall that marked 2021 into a glut in 2022. The report also looks at the United States and suggests that the US economy is likely to decelerate further in 2022 given that the economic high of fiscal stimulus equating to 25% of GDP will become progressively smaller.
The report also cautions that the rising level of inflation felt in the US could reach countries such as Singapore, Australia and China in 2022. These countries have not dealt with rising inflation partly because their economies have not fully reopened.
Looking at emerging markets, the GIO predicts that tighter spending and higher local rates could make local emerging market currencies and government bonds attractive to international investors again at some point in 2022.
Also, in emerging markets high fertiliser costs as a result high energy prices in 2021 indicate that crop yields could remain low in 2022 after two years in which they were impacted by COVID-related issues.
The governments of the major GCC economies, the UAE and Saudi Arabia, are likely to continue with modestly expansionary fiscal strategies, promoting accelerated growth. The report forecasts that the UAE could grow as much as 3.8% and Saudi Arabia, 3.6%, supported by higher oil prices and increasingly diversified economies.
Chris Langner, Acting Head of Investment Strategy, Private Banking at FAB said: “The economic imbalances caused by the pandemic are likely to start being resolved in 2022. However, key central banks have also started to reverse the extraordinarily easy monetary policy, and that could have a wide-ranging impact on asset prices and growth in developed countries. Meanwhile, some Asian countries are likely to gradually reopen this year, boosting growth and potentially inflation in a similar way to what was seen in the US in 2021.”
FAB’s Global Investment Outlook 2022 can be viewed and downloaded here.
First Abu Dhabi Bank
FAB, the UAE’s largest bank and one of the world’s largest and safest institutions, offers an extensive range of tailor-made solutions, and products and services, to provide a customised experience. Through its strategic offerings, it looks to meet the banking needs of customers across the world via its market-leading Corporate and Investment Banking and Personal Banking franchises.