Inflation fears have passed their peak – Economists
Have we passed the peak of inflation fear? Investment insights from EFG Bank
After one of the worst years for global economic growth in 2020, this year looks set to be one of the best. Indeed, the bounce in activity is greater than many expected just a few months ago. Nevertheless, uncertainties around the economy remain, with inflation currently one of the most prevalent concerns. EFG’s economists investigate the underlying inflation trend.
For the G20 economies in aggregate, real GDP was already above its pre-Covid level in the first quarter of 2021. That recovery was led by China; but South Korea and Australia were also above their pre-Covid levels. While the outlook is certainly rosier than before, one major economic uncertainty for the months ahead relates to inflation. A rebound in inflation has been seen in many economies, notably the US. There are concerns that this may…