Zilla Capital | Private Equity & Investment Banking
Stagflation on the horizon? Global supply chain disruptions stall recovery
Key points that we will cover in the report:
Supply chain and inflation headwinds hamper the global recovery.
Supply chain disruptions are unlikely to disappear overnight, but a surge in global corporate capital expenditure in 2021 and a somewhat cooling demand should ultimately alleviate shortages.
In the debate between transitory and runaway inflation, it is supposed that the truth lies somewhere in the middle, with inflation likely to be “sticky but not oppressive”.
It’s not runaway inflation, and it’s certainly not stagflation. In fact, the US economy is going through a bout of “M.E.S.S.I.” inflation dynamics – Moderating Expansion with Sticky Supply-driven Inflation – a rare phenomenon where strong, but cooling demand is met by constrained, but accelerating supply, leading to transitory, yet sticky inflation.
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Travel Restrictions, Stocks Down: Here’s What To Know About Omicron!
The World Health Organization on Friday assigned the name “omicron” to a new, heavily mutated variant of coronavirus found in South Africa that has sparked fears of a more transmissible, possibly vaccine-resistant virus and sent shockwaves through global markets as governments around the world bar travel from the region. The EU and UK moved to impose travel restrictions on a group of southern African nations, while Israel has banned travellers from South Africa. Click Here
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The Rise of Delta Variant Vs. Global Inflation
A year ago, the biggest question for investors was how quickly the global economy would recover from the depths of the COVID-19 recession. Today, the answer is clear: After the single largest drop in quarterly gross domestic product (GDP) on record, GDP is already back on its pre-COVID-19 path. Now, the debate is whether the strong recovery and pick-up in inflation are part of a short-lived spurt, driven by policy support and economic reopening. Or, this recovery has staying power, with forecasts for 6.5% global GDP growth for 2021 led by the US economy’s 7.1% growth, followed by 4.8% globally and 4.9% for US in 2022. To read more about the report download the pdf or Click Here