Ad sage Sir Martin Sorrell is predicting a bumper 2022 economically and that’s despite the threat of looming interest rate rises and governments pulling back on COVID stimulus packages.
Speaking to British media site LBC, Sorrell said interest rates would have to rise to curb the UK’s spiralling inflation. As is the case here in Australia.
The 74-year-old S4 Capital boss predicted that the Bank of England would raise rates “an extra quarter point, I think it’s inevitable that interest rates are going to rise.”
“Given the spending that was quite rightly made in relation to the pandemic and the infusions in the economy, that has to be taken into account.
“Having said that, we saw results this morning from Publicis (read B&T’s reporting on that HERE)… and what that’s telling you is that 2022 is going to be a good year.
“GDP growth globally is going to be about four to five per cent versus five to six per cent last year. So 2022 is going to be a good year despite the withdrawal of the stimuli, despite the raising of interest rates from very low levels.
“The Prime Minister (Boris Johnson), for whatever reason, has been emphasising strongly, recently, that the British economy is growing faster than anywhere else in Europe. That’s partly because we had the worst position as a result of the pandemic last year, so it’s the bounceback,” Sorrell said.
