Simon Ward

The world economy is set for strong growth next year, helped by a broad roll-out of the coronavirus vaccine which will restore confidence. But there is a downside to this development: it will be followed by a strong rise in inflation – of up to 5%.

Simon Ward (pictured), Janus Henderson’s chief economist, gives this forecast to clients in his macroeconomic outlook. He expects a long-term period of substantially higher inflation from 2021 onwards.

Chief economists are all waiting for the gradual lifting of lockdown measures. But otherwise, there’s little that unites them. Some are optimistic for the recovery to continue, while other believe markets are ahead of themselves.

The corona crisis is severely compromising the growth prospects of the world economy. ‘The stagnation of new infections in the main industrialised countries is good news, although concerns about certain emerging countries such as Russia, India and Brazil remain,’ says Keith Wade (pictured), chief economist at Schroders.