Emerging markets can attract more capital

Persistent high inflation, a quick end to the loose monetary policy of central banks, and a "hawkish" approach to interest rate increases – these are the most important risks that investors will have to take into account in the coming months. As emphasized by Zbigniew Jakubowski, vice-president of Generali Investments TFI, 2022 is the end of the era of cheap money. Many central banks, especially in emerging markets, have been raising interest rates for months. In Poland, only in the first half of the year, an increase to 4.0 percent is expected. This, in turn, may encourage investors to take an interest in this group of countries.

"The global economy is entering the third year of the pandemic, being in the expansion phase of the business cycle. The GDP growth rate in individual countries will slow down and will be at levels significantly lower than in 2021, which was characterized by a strong recovery after 2020, burdened with the enormous costs of combating Covid-19. The economy of our country will also follow this trend, characteristic of the expansion phase," Zbigniew Jakubowski, vice president of the management board of Generali Investments TFI, said.

Many experts, including the head of the US Federal Reserve, Jerome Powell, emphasize that it is necessary, however, to stop treating high inflation as a temporary phenomenon.

(Newseria)