Sat. Jan 22nd, 2022


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“The easy part of this unequal global economic recovery seems to be over,” is the statement of one prominent economist quoted by FT economics editor Chris Giles in his outlook for 2022. Another adds that a “Goldilocks” outcome – not too hot and not too cold – is unlikely.

The list of potential obstacles on the road to recovery is long. The OECD expects world growth to decline from 5.6 percent in 2021 to 4.5 percent this year, but can it be further pushed back by new variants of coronavirus? What should central banks do against inflation? Can supply chain problems and labor shortages be overcome? Will consumer sentiment recover?

Energy prices are also creating increasing headaches around the world. In Kazakhstan, Central Asia’s largest economy, the government resigned today amid protests over fuel costs. In the UK, Business Secretary Kwasi Kwarteng speaks to energy suppliers on assistance to households most in need, although Chancellor Rishi Sunak has already warned that there is a limit to what the government could do.

Sunak has many other problems on his plate. The FT’s annual survey of economists points to a difficult year ahead political uncertainty and the effects of Brexit’s slow recovery, while, in addition to rising energy prices and other costs, consumers is hit by tax increases.

Across the Atlantic, US President Joe Biden must wrestle multiple crises, including record numbers of new coronavirus infections, legislative problems with its spending proposals and a series of headaches for foreign policy.

But this is the rise in inflationn that still keeps policymakers busy.

If the Bank of England, the European Central Bank and the US Federal Reserve are right, inflationary pressures will start to ease this year, a view shared by investors, says Rob Armstrong in his list of known and unknown for 2022.

The big question, says Chris Giles, “is whether the pressure on prices will ease enough for central banks not to take strict action to bring down inflation, which could halt the recovery.”

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Must know: the economy

Opul and his allies agreed increase oil output for the seventh consecutive month, a sign of the cartel’s growing confidence that Omicron will not hurt demand.

Latest for UK and Europe

Coronavirus Test Rules will be in England relieved next week as capacity becomes scarce and critical public services are hit by staff shortages. Individuals who are asymptomatic and test positive using a lateral fluid will be expected to report their results and isolate themselves, but will not be advised to take a follow-up PCR test. About 1 million people in the country are currently isolated.

Household loan data for November proposed the British economy was strengthening before Omicron recovered.

Worldwide latest

The US private sector 807 000 jobs added in December, the most in seven months, before Omicron hit. The services sector, which was hit hardest by pandemic restrictions, fueled the increase with 669,000 new jobs.

Chinese banks cut back traditional lending as concerns grow about the strength of the country’s economic recovery, preferring to buy low-risk financial instruments rather than risk losses from unqualified borrowers.

Global reforms agreed by 137 countries in October could lead to governments earning a much-needed $ 150 billion a year. corporate tax revenue, but making the new rules legally binding is still a difficult question, explains global tax correspondent Emma Agyemang.

Contributing Editor Ruchir Sharma Selects 10 economic trends which can define 2022, from a continuous “baby bust” to “green flask” and the blow off “bubbles”.

Must know: business

This week appeal has become the world’s first $ 3tn company after a large increase in demand for its products during the pandemic. The company emerged relatively unscathed from regulatory criticism while diversifying into products such as AirPods and the Apple Watch.

Apple is at the top of a select group of companies worth more than $ 1 billion, including Tesla and Amazon. Google parent Alphabet and oil group Saudi Aramco are valued at about $ 2 billion, while Microsoft is worth about $ 2.5 billion. Here is our list of the corporate world winners and losers of the pandemic and here is our guide on what to do looking forward to 2022.

The hedge fund industry struggle attract new money after a weak year of returns, an extremely strong period followed during the initial wave of the pandemic. It boosted drivers like the UK’s Chris Rokos and partners who have done more than £ 900 million profit.

A new round of delays caused by Omicron does not have the optimism of scholarship organizers. However, the pandemic has the move to big events, or as one operations manager put it: “If the opportunity and the sector were ahead of Covid, it would recover very quickly. If it was a second or third level show, it would not recover. ”

The rapid spread of the Omicron variant in the US caused chaos in the travel industry and brought the new year to a standstill return to work.

The World of Work

Capital has enjoyed the whip handover for about 40 years, but there are indications that labor force is finally on the rise, says the FT Redaksie. Companies pay more attention to recruitment and retention while “a new generation of workers, from shelf stackers to delivery managers, have learned how essential they really are”.

Office space in England it massively shrunk during the pandemic and will continue to decline as companies accept telework and also respond to new environmental regulations.

Pandemic line graph accelerates decline in national workspace showing England's office footprint shrinks

The shift to hybrid models of work also led to a range of new tools, writes workplace expert Harriet Minter, including software to optimize office space, ensure fairness over pay and monitor staff well-being.

Covid cases and vaccinations

Total global cases: 292.9m

Get the latest global picture with us vaccine tracker

And finally …

Pandemic uncertainty still hits exhibitions and performances, but there is much to look forward to in 2022. Art editor Jan Dalley pick out her highlights for the year ahead.

© Cornelia Parker / Tate | ‘Cold Dark Matter: An Exploded View’ (1991)

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