Coming Down the Mountain in 2022

Fundamentals are strong, but several factors that drove growth in 2021 won’t be working in the economy’s favor as much this year — and that could pump the brakes on 2022’s performance.

Tailwinds subside, headwinds remain

Stimulus Softens

Markets enjoyed support from monetary policy and fiscal stimulus in 2021. Both will likely be pulled back.

 

Resistance Grows

The continuing impact of the pandemic and the recent emergence of inflation are both expected to weigh on the economy.

 

Even with new and ongoing challenges, organic growth is showing signs of durability, with central banks planning to raise rates in 2022. Expect the business cycle to shift from a broad market rally to narrowly driven, slow expansion, with opportunities for investors to keep moving forward.


 

Numbers Retreat

Without the lows of 2020 as a comparison, year-over-year growth is forecast to fall.

Economic Growth

GLOBAL EQUITIES EARNING GROWTH



TEXT VERSION OF CHARTS

Economic Growth

Year Growth
2021 5.9%
2022 4.9%


Global Equities Earning Growth

Year Earning Growth
2021 47%
2022 6%

 

(PDF) Download the PDF

Read the article on PNC Insights »

Explore more PNC Private Bank Hawthorn »

Contact PNC Private Bank Hawthorn for More Information

Important Legal Disclosures & Information

The PNC Financial Services Group, Inc. (“PNC”) uses the marketing names PNC Private BankSM, PNC Private Bank HawthornSM, and Hawthorn Institute for Family SuccessSM to provide investment consulting and wealth management, fiduciary services, FDIC-insured banking products and services, and lending of funds to individual clients through PNC Bank, National Association (“PNC Bank”), which is a Member FDIC, and to provide specific fiduciary and agency services through PNC Delaware Trust Company or PNC Ohio Trust Company. PNC does not provide legal, tax, or accounting advice unless, with respect to tax advice, PNC Bank has entered into a written tax services agreement. PNC Bank is not registered as a municipal advisor under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

“PNC Private Bank,” “PNC Private Bank Hawthorn” and “Hawthorn Institute for Family Success” are service marks, of The PNC Financial Services Group, Inc.

Investments: Not FDIC Insured. No Bank Guarantee. May Lose Value.

Read a summary of privacy rights for California residents which outlines the types of information we collect, and how and why we use that information.