Looking ahead to the new year, Robert Horrocks, Chief Investment Officer (CIO) at Asia specialist Matthews Asia, ventures a prediction in favour of the traditionally weaker economies. He believes 2022 is likely to be a year of high inflation: “This generally helps the more vulnerable markets such as Eastern European countries, which have been dominated by the inflationary glow of a fairly moribund core Europe of France and Germany. Countries and regions like Vietnam and Southeast Asia, which have been chronically under-stimulated, should also benefit from China’s reflationary policies.” In his latest video market outlook (“Matthews Asia: CIO Outlook for 2022“) for 2022, Horrocks specifically addresses three areas: reflation of economies, inflation and deflation as long-term trends.
