29-Nov-21 Forecasts
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Macro

Growth above potential in 2022

GDP growth (in %, year-on-year)

2021F

2022F

United States 5.6   4.0
Eurozone 5.0   4.6
United Kingdom 6.8   4.5
Japan 1.9   2.9
China 7.7   5.3
World 5.6   4.5

Fiscal deficit (in % of GDP)

2021F

2022F

United States 14.1   6.3
Eurozone 7.0   4.2
United Kingdom 9.5   6.5
Japan 7.0   4.5
China 7.5   6.8

Consumer price inflation (in %, year-on-year)

2021F

2022F

United States[1] 3.7   2.8
Eurozone 2.5   2.6
United Kingdom 2.4   3.7
Japan -0.2   0.8
China 1.0   2.2

Current-account balance (in % of GDP)

2021F

2022F

United States -3.6   -3.3
Eurozone 1.8   1.8
United Kingdom -3.4   -3.5
Japan 3.7   3.5
China 1.6   1.5

Benchmark rates (in %)

Current[2]

Dec 2022F

United States 0.00-0.25   0.25-0.50
Eurozone -0.50   -0.50
United Kingdom 0.10   0.75
Japan 0.00   0.00
China 3.85   3.85

Commodities (in dollars)

Current[2]

Dec 2022F

Crude oil (WTI 12M forward) 76.6   70
Gold 1,859   1,750
Copper (LME) 9,442   10,000

Equities

Fourth positive year ahead?

Current[3]

Dec 2022F

Total Return (exp.)[4]

Expected earnings growth

P/E impact

Dividend yield

United States
(S&P 500)

4,705 ‌ 5,000 7.7% 7% -1% 1.5%

Europe
(Stoxx Europe 600)

488 ‌ 510 7.7% 8% -3% 3.1%

Eurozone
(Euro Stoxx 50)

4,384 ‌ 4,600 8.0% 9% -4% 3.0%

Germany
(DAX)[5]

16,222 ‌ 17,000 4.8% 8% -6% 2.8%

United Kingdom
(FTSE 100)

7,256 ‌ 7,350 5.6% 0% 1% 4.3%

Switzerland
(Swiss Market Index)

12,553 ‌ 13,000 6.6% 10% -6% 3.1%

Japan
(MSCI Japan Index)

1,258 ‌ 1,350 9.2% 12% -5% 2.4%

MSCI Emerging Markets Index
(USD)

1,274 ‌ 1,340 8.3% 8% -3% 2.9%

MSCI AC Asia ex Japan Index
(USD)

820 ‌ 885 10.7% 9% -1% 2.4%

F refers to DWS Investment GmbH forecasts as of 11/18/21

Fixed Income

Inflation worries and volatility

Current[2]

Dec 2022F

United States
U.S. Treasuries (10-year) 1.59%   2.00%
U.S. high-yield municipal bonds[6]  183 bp   200 bp
U.S. investment-grade corporates 86 bp   70 bp
U.S. high-yield corporates 298 bp   290 bp
Securitized: mortgage-backed securities[7] 6 bp   15 bp 
Europe
German Bunds (10-year) -0.28%   0.20%
UK Gilts (10-year) 0.93%   1.25%
Euro investment-grade corporates[8] 111 bp   75 bp
Euro high-yield corporates[8] 333 bp   290 bp
Securitized: covered bonds[8] 47 bp   35 bp
Italy (10-year)[8] 120 bp   150 bp
Asia-Pacific
Japanese government bonds (10-year) 0.08%   0.20%
Asia credit 294 bp   275 bp
Global
Emerging-market sovereigns 358 bp   320 bp
Emerging-market credit 320 bp   290 bp

Currencies

Current[2]

Dec 2022F

EUR vs. USD 1.14   1.20
USD vs. JPY 114   115
EUR vs. GBP 0.84   0.86
GBP vs. USD 1.35   1.40
USD vs. CNY 6.39   6.65


F refers to DWS Investment GmbH forecasts as of 11/18/21
WTI = West Texas Intermediate
LME = London Metal Exchange
bp = basis points

Legend:

  • Macro data exchange rates and alternative investments: The arrows signal whether we expect to see an upward trend  , a sideways trend  or a downward trend  .
  • The signals' colors illustrate the return opportunities for long-only investors:  positive return potential for long-only investors.  limited return opportunity as well as downside risk.  negative return potential for long-only investors.

More topics

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1. core rate, personal consumption expenditure Dec/Dec in % (no average as for the other figures)

2. Source: Bloomberg Finance L.P. as of 11/18/21

3. Sources: Bloomberg Finance L.P., FactSet Research Systems Inc. as of 11/18/21

4. Expected total return includes interest, dividends and capital gains where applicable. Dividends are not guaranteed. The amount of dividend payments can change or not take place at all.

5. Total-return index (includes dividends)

6. Spread over U.S. Treasuries

7. Bloomberg Barclays MBS Forward Index

8. Spread over German Bunds

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