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Global equities in 2022 and beyond

The sharp rebound in economic activity over the last year has been driven by the extraordinary amount of post-pandemic stimulus. The pace of economic growth is now slowing, and that’s because stimulus has faded.

We’ve seen lockdown-related overspending on goods, which will normalise with reopening, but spending in the services sector is still yet to fully normalise. It’s also worth bearing in mind that softer manufacturing activity is related to constraints along the entire supply chain – from raw materials all the way through to transport – resulting in an inability to meet demand. Record low inventories are being reported broadly across most industries.

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