2022 Economic Triumph?
According to JPMorgan, 2022 will mark the beginning of full economic recovery and the end of the pandemic. The COVID-19 health crisis has plagued the world's economy for the past two years causing financial wounds everywhere.
JPMorgan's chief global market strategist Marko Kolanovic is on the record stating, "Our view is that 2022 will be the year of a full global recovery, an end of the global pandemic and a return to normal conditions we had prior to the Covid-19 outbreak... This is warranted by achieving broad population immunity and with the help of human ingenuity, such as new therapeutics expected to be broadly available in 2022."
While this is a positive claim it is also a bold one. There are many underlying factors that could alter the course of the end of the pandemic and economic stability in the coming year. Factors such as geopolitical tensions in Europe and Asia could have input on the result of the pandemic along with uncertainties around high inflation and a looming energy crisis.
Do you believe 2022 could be a year of economic triumph?
Source: https://www.cnn.com/2021/12/08/economy/economy-jpmorgan-2022/index.html
3 comments:
I believe 2022 will be a great year for economic growth and activity as Covid is receding, and people are beginning to spend more money and gas prices are up. Even if it is not as big as people think it is, it will appear so as economic activity was very low during the pandemic and we were experiencing low prices. I wouldn't be surprised if we have low unemployment but also high inflation as people are going to spend more and more.
I am not sure whether the economy will return back to normalcy in 2022. Economic factors such as the unemployment rate and GDP have gotten better since the worst of the pandemic, but we are still not at pre-pandemic levels. I am worried about new strains of COVID coming out every other month which will hinder progress. The stock market, in particular, has been especially volatile to new COVID strain variant news, when the Omnicom variant news broke the stock market took a heavy hit. When evaluating the economic performance of the country it is very important to compare it to the economic highs we had prior to the pandemic. I do not think our economy will recover as fast as people think because the stock market is very volatile when hearing any news regarding COVID, there are supply shortages that do not look like they will be solved anytime soon, and companies are still short staffed. I hope the economy will boom in 2022, but I think it will be a slower recovery than people are hoping.
If that is true, I would imagine we will see a huge boom in investment and growth in the financial sector. JP Morgan will likely be leading that charge as one of the largest financial firms in the United States. I could foresee a great deal of short term loans with law interest rates in order to produce fast growth, and firms that are willing to take a risk now will see huge gains in the future.
Post a Comment