The current global economic outlook “is subject to multiple variables,” said Fares Benouari, Senior Portfolio Manager of Swiss and Global Equities at Geneva-headquartered private bank and wealth management firm Union Bancaire Privée (UBP).
He has speaking on Wednesday, December 22, during a webinar titled Beyond the Bounce Back, organized by the UAE-based insurance intermediary and financial services provider Continental Group.
Benouari said at the event: “The economic outlook is subject to multiple variables, including new strains, spells, and administrative responses. But there are structural tailwinds to factor in too.”
He continued: “Businesses have made productivity gains, pivoting to digital operations, increasing efficiencies, and reducing costs. There is an emphasis on value creation, and businesses that can generate good revenues and accurately measure cash flows will stand out.”
He predicted that 2022 would see greater exposure to environmental, social and governance (ESG), automation, and fintech as part of polythematic investment strategies.
The topic of global inflation also came up during the panel discussion on the webinar, with Jens Waechter, Senior Global Macro and Research Analyst at Franklin Templeton saying: “The current inflation is driven by both demand and supply. Disposable income has increased during the pandemic, as people couldn’t spend.”
He added: “Following the reopening, however, spending has increased, but supply chains are unable to meet the high demand. So, prices are rising, especially in service sectors that have been disrupted the hardest by the pandemic.”
He also said: “With deflationary policies expected soon, the situation could improve by the second half of 2022.”
Meanwhile, in a poll conducted at the event itself, 74 percent of respondents — nearly three out of every four — said they expect inflation to increase in 2022.
Experts have already told TRENDS that inflation is on the rise in almost all the GCC countries, with a host of issues fueling it.