Japan Economic Outlook BoJ still facing no inflation pressure The Omicron surge will cause a renewed fall in consumer spending this quarter. But we still expect GDP to return to its pre-virus path in the second half of the year. And while Omicron and any... 12th January 2022 · 22 mins read
Europe Chart Pack Inflation to remain above target in 2022 Euro-zone inflation reached 5.0% in December, which is likely to be the peak. Unless oil and gas prices surge again in 2022, which seems unlikely, energy inflation will plummet – we forecast the... 11th January 2022 · 12 mins read
Europe Data Response EZ Unemployment (Nov.) Unemployment in the euro-zone fell again in November, and timelier data suggest that there have been further improvements since then. While there has been less of a hit to the workforce in the euro... 10th January 2022 · 2 mins read
Canada Economics Weekly Omicron a new type of challenge for labour market The Omicron wave will be characterised more by heightened absenteeism from work than previous waves. This raises the risk that the hit to activity will be larger than current restrictions alone might... 7th January 2022 · 4 mins read
US Data Response Employment Report (Dec.) While the 199,000 gain in non-farm payrolls once again disappointed the consensus, a much larger gain in the household measure of employment and a tepid rise in participation pushed the unemployment... 7th January 2022 · 2 mins read
Canada Data Response Labour Force Survey (Dec.) The strength of employment in December is mainly because the LFS reference week preceded the onset of the Omicron wave. Nevertheless, the fall in hours worked is probably a taste of what is to come... 7th January 2022 · 2 mins read
Europe Economics Weekly Euro-zone to keep calm and Omicr-on in 2022 While the new year has started much like 2021 did, with a surge in Covid cases and consumers becoming more cautious, the response of governments has been markedly different. In general, blanket... 7th January 2022 · 5 mins read
Japan Data Response Japan Wages & Household Spending (Nov. 2021) Wage growth fell to zero in November due a slump in bonus payments, but it should accelerate as the labour market tightens and the recent reopening feeds into a renewed recovery in overtime and bonus... 7th January 2022 · 2 mins read
Canada Economics Update Five key calls and five unknowns for Canada in 2022 We expect GDP to grow strongly once the current restrictions are eased, but we are sceptical that either GDP growth or inflation will be as high this year as widely anticipated. This leads us to think... 6th January 2022 · 5 mins read
Emerging Europe Economics Update CEE: wage-price spiral a growing risk in 2022 With central banks across Central and Eastern Europe (CEE) raising interest rates to tackle inflation, we think the risks of a wage-price spiral are low. Even so, persistently above-target inflation... 5th January 2022 · 5 mins read
Japan Economics Update Key calls for 2022 We expect GDP to return to its pre-virus path in the second half of the year as services spending finally returns to near-normal. However, the risks to that forecast remain tilted to the downside as... 5th January 2022 · 4 mins read
Canada Chart Pack Restrictions to weigh on first-quarter GDP growth The economy gained momentum at the start of the fourth quarter and we have revised up our forecast for fourth-quarter GDP growth to 5.5% annualised, from 4.0%. Given the rapidly deteriorating... 23rd December 2021 · 8 mins read
Australia & New Zealand Chart Pack Omicron won’t hold back consumption for long The Omicron has lifted new virus cases to a record high, though hospitalisations remain low. We estimate that there are around 2000 hospital beds available for Covid-19 patients in New South Wales... 23rd December 2021 · 11 mins read
Latin America Chart Pack Omicron may hinder already weakening recoveries Recoveries across Latin America have lost momentum in Q4 even though, unlike in other regions such as Europe, new COVID-19 cases generally remain low and containment measures are still light-touch at... 22nd December 2021 · 14 mins read
Japan Chart Pack Manufacturing rebound should continue into 2022 Q4 is shaping up to be strong in line with our forecast. Mobility data point to another sizeable rebound in consumer spending, and strong export data and optimistic firm forecasts suggest that... 22nd December 2021 · 10 mins read
China Chart Pack The People’s Bank is not pleased The People’s Bank purchased nearly $6bn in foreign exchange last month, by our estimate. That’s not much in the context of China’s cross-border trade and investment flows. But it was the biggest... 22nd December 2021 · 12 mins read
